HomeMy WebLinkAboutComprehensive Annual Financial Report 12/31/1997COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF LINO LAKES, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 1997
Prepared By:
Finance Department
Mary Vaske
Finance Director
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
I. INTRODUCTORY SECTION
Principal City Officials 3
Organization Chart 5
Letter of Transmittal 7
Certificate of Achievement for Excellence in Financial Reporting 17
II. FINANCIAL SECTION
Independent Auditor's Report
21
General Purpose Financial Statements
Combined Balance Sheet - All Fund Types and Account Groups Statement 1 24
_ Combined Statement of Revenue, Expenditures and Changes in
Fund Balance - All Governmental Fund Types Statement 2 26
Combined Statement of Revenue, Expenditures and Changes in
Fund Balance - Budget and Actual - General and
Special Revenue Fund Types Statement 3 27
Combined Statement of Revenue, Expenses and Changes in Retained
Earnings - All Proprietary Fund Types Statement 4 28
Combined Statement of Cash Flows - All Proprietary Fund Types Statement 5 29
Notes to Financial Statements 31
Combining, Individual Fund and Account Group Financial Statements
General Fund:
Balance Sheet Statement 6 59
Statement of Revenue, Expenditures and Changes in
Fund Balance - Budget and Actual Statement 7 60
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
Special Revenue Funds:
Combining Balance Sheet Statement 8 68
Combining Statement of Revenue, Expenditures and Changes in
Fund Balance Statement 9 69
Program Recreation - Statement of Revenue, Expenditures and
Changes in Fund Balance Statementl0 70
Debt Service Funds:
Combining Balance Sheet Statement 11 73
Combining Statement of Revenue, Expenditures and Changes
in Fund Balance Statement 12 74
Capital Project Funds:
Combining Balance Sheet Statement 13 79
Combining Statement of Revenue, Expenditures and Changes
in Fund Balance Statement 14 85
Enterprise Funds:
Combining Balance Sheet Statement 15 92
Combining Statement of Revenue, Expenses and Changes in
Retained Earnings Statement 16 93
Combining Statement of Cash Flows Statement 17 94
Agency Funds:
Combining Balance Sheet Statement 18 96
Combining Statement of Changes in Assets and Liabilities Statement 19 97
General Fixed Assets Account Group:
Schedule of General Fixed Assets - By Source Statement 20 100
Schedule of General Fixed Assets - By Function and Activity Statement 21 101
Schedule of Changes in General Fixed Assets - By Function and
Activity Statement 22 102
General Long -Term Debt Account Group:
Schedule of General Long -Term Debt Statement 23 104
Supplementary Financial Information
Combined Schedule of Indebtedness Exhibit 1 106
Schedule of Deferred Tax Levies Exhibit 2 108
CITY OF LINO LAKES, MINNESOTA
... TABLE OF CONTENTS
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Reference Number
Debt Service Payments to Maturity - All Bonds Exhibit 3 109
— Construction Work in Process Exhibit 4 110
Insurance in Force Exhibit 5 111
Taxable Valuations, Tax Levies and Tax Rates Exhibit 6 112
Schedule of Sources and Uses of Funds:
Tax Increment Housing District #1 -1 Exhibit 7 113
Tax Increment Housing District #1 -2 Exhibit 8 114
Tax Increment Financing District #1 -4 Exhibit 9 115
Tax Increment Financing District #1 -5 Exhibit 10 116
Tax Increment Financing District #1 -6 Exhibit 11 117
Tax Increment Financing District #1 -7 Exhibit 12 118
Tax Increment Financing District #1 -8 Exhibit 13 119
— Tax Increment Financing District #3 -1 Exhibit 14 120
III. STATISTICAL SECTION
General Fund:
Expenditures By Function - Last Ten Fiscal Years Table 1 122
Revenues By Source - Last Ten Fiscal Years Table 2 123
— Property Tax Levies and Collections - Last Ten Fiscal Years Table 3 124
Special Assessment Levies and Collections - Last Ten Fiscal Years Table 4 125
Ratio of Annual Debt Service Expenditures for General Bonded
Debt to Total General Expenditures - Last Ten Fiscal Years Table 5 127
Assessed and Estimated Actual Value of Taxable Property -
Last Ten Fiscal Years Table 6 128
Property Tax Rates - Direct and Overlapping Governments -
Last Ten Fiscal Years Table 7 130
Ratio of Net Bonded Debt to Assessed Value and Net Bonded
Debt Per Capita - Last Ten Fiscal Years Table 8 131
Computation of Direct and Overlapping Debt including Debt Ratios Table 9 132
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Computation of Legal Debt Margin
Schedule of Revenue Bond Coverage - Water Fund -
Last Six Fiscal Years
Principal Taxpayers
Property Value, Construction Permits and Bank Deposits -
Last Ten Fiscal Years
Demographic Statistics
Miscellaneous Statistics
Page
Reference Number
Table 10 133
Table 11 134
Table 12 135
Table 13 136
Table 14 137
Table 15 138
I.
INTRODUCTORY
SECTION
1
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 1997
Elected Officials
Term Expires
Mayor:
John Landers December 31, 1997
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Council Members:
John Bergeson December 31, 1997
Sally Kuether December 31, 1997
Andy Neal December 31, 1999
Chris Lyden December 31, 1999
Appointed Personnel
City Administrator Randall Schumacher
▪ Finance Director Mary Vaske
Public Works Director David Ahrens
Police Chief David Pecchia
▪ Community Development Director Brian Wessel
Parks and Recreation Rick DeGardner
Building Official Pete Kluegel
Environmental Coordinator Martin Aslesen
Assistant City Administrator Daniel Tesch
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June 16, 1998
Honorable Mayor, Members of the City
Council, and City Administrator
City of Lino Lakes, Minnesota
The Comprehensive Annual Financial Report of the City of Lino Lakes, Minnesota, is
submitted herein for the year ended December 31, 1997. The City is responsible for the
accuracy and completeness of the presentation including all disclosures. The Finance
department believes that the data presented is accurate in all material aspects and presents the
financial position and results of operations of the City in a fair manner.
The organization, form and contents of this report were prepared in accordance with the
standards prescribed by the Government Finance Officer's Association of the United States and
Canada, the American Institute of Certified Accountants, the State Auditor's Office, the State
of Minnesota and the City Charter.
The Comprehensive Annual Financial Report consists of three parts:
a. An Introductory Section - contains the letter of transmittal, table of contents, elected
and administrative officials and organizational chart.
b. A Financial Section - contains the independent auditors' report, notes to the financial
statements, combined financial statements and the combining and individual fund and
account group statements and supplemental schedules.
c. A Statistical Section - contains various unaudited tables showing the financial trends of
the City and miscellaneous statistics.
I believe that the data presented is accurate in all material aspects. It is presented in a manner
that fairly reflects the financial operations of the City and is easily read for maximum
understanding of the financial manners presented. The notes are considered an essential part in
providing insight into the information presented.
Reliable financial information requires an establishment of accounting records that are
adequately supported by internal accounting controls. The City believes that existing internal
accounting controls are adequate to provide reasonable assurance that City assets are
1189 Main Street • Lino Lakes, Minnesota • 55014
Phone/TDD: 612 - 464 -5562 • Fax: 612- 464 -4568
7
safeguarded against loss from unauthorized use or disposition and that the financial records are
reliable for the preparation of the financial statements.
The City Charter grants the City Council full authority over the financial matters of the City.
The City Administrator has the responsibility of submitting the annual budget to the City
Council. The budget is adopted by resolution and the amounts can not increase beyond the
estimated receipts except to the extent that actual receipts exceed the estimate.
THE REPORTING ENTITY
In accordance with the Governmental Accounting Standards Board requirements, the financial
reporting entity includes all funds and account groups of the City as well as all of its
component units. Component units are legally separate entities for which the primary
government is financially accountable.
Blended component units, although legally separate entities, are in substance, part of the
primary government's operations and are included as part of the primary government.
Accordingly, the Economic Development Authority is reported as a Special Revenue Fund of
the primary government.
The City provides a full range of municipal services. These services include: general
government, public safety (police & fire), public works (streets, fleet, solid waste abatement),
parks and recreation, public improvements, providing and maintaining sanitary and storm
sewer, and water infrastructure.
ECONOMIC CONDITION AND OUTLOOK
The City of Lino Lakes is a growing community within the County of Anoka. It covers an area
of 33 square miles and has a population in excess of 14,000. Within the City's borders lies the
2,550 acre Rice Creek Chain of Lakes Regional Park. Access to St. Paul and Minneapolis is
provided by I -35W and I -35E.
The economic development effort was established in 1993 by the City Council to cover a five
year plan. The effort has begun to reverse dependence on residential property taxes. Over the
past five years, the City has had 24 new business projects totaling $39,000,000 in added project
value. The Apollo Business Park on I35W and Clearwater Creek Development Center on I35E
continue to attract industrial development. Many new employment opportunities have been
provided through this effort.
With the many wetlands and regional parks, environmental issues are important in this City.
Future development is deemed to include equal consideration of economic development and
environmental issues by establishing criteria to evaluate the desirability of each economic
development opportunity.
MAJOR INITIATIVES
The City is working with Anoka County on a joint effort to realign Otter Lake Road through
the Clearwater Creek Development Center, which will open up the center for additional
commercial and industrial development.
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Commercial development in Lino Lakes has been the focus of a city- initiated development
called the "Village" on I -35W and Lake Drive. This innovative 75 acre mixed -use
development will include professional buildings, civic facilities, commercial development and
a mix of housing types. The goal of the City is to base this development on many principles of
the Metropolitan Council's "livable communities" concept.
The first phase of the "Village" has begun with the completion of the Fairview Clinic. In 1998,
ground will be broken for a new community bank. The City will also be breaking ground on a
new city hall, police station, and a joint lease agreement for the construction of a Centennial
School District Early Childhood Center.
The second phase of the "Village" is planned to include a YMCA, professional building and
neighborhood retail plaza.
Extending municipal utilities is a top priority, as the State of Minnesota is requiring stricter
laws for well and septic systems. The City adopted an ordinance in 1996 to require all septic
systems to be inspected and pumped every two years to account for all systems within the City.
Compliance with this ordinance has been very high, with only a few systems remaining to
comply. The Engineering Department is working diligently on planning for future utility
extensions to promote the growth of both residential and commercial development.
Because of the environmental concerns of the City, an Environmental Coordinator was hired
and a complete environmental inventory will be taken with completion in 1999.
FINANCIAL INFORMATION
The City's policy is to invest all available monies at competitive rates in accordance with
Minnesota law. Investments are made by minimizing credit and market risks while
maintaining a competitive yield. Funds are invested in certificates of deposit, commercial
paper and U.S. government agencies. Cash is pooled in one account to provide maximum
return.
General Fund
The General Fund accounts for all revenues and expenditures necessary to provide basic
governmental operations of the City.
10
General Fund revenues totaled $4,749,974 in 1997 compared to $4,627,532 in 1996. The
breakdown of revenues is shown in the following table:
Percent
1997 1996 Change
General property taxes $2,658,485 $2,327,048 14.2%
Licenses and permits 566,561 788,480 (28.1 %)
Intergovernmental revenues 881,459 816,794 7.9%
Charges for services 291,090 308,262 (5.6 %)
Fines and forfeits 99,390 86,158 15.4%
Interest on investments 108,212 86,615 24.9%
Miscellaneous 144,777 214,175 (32.4 %)
Total $4,749,974 $4,627,532 (32.4 %)
The increase in General property taxes was due to the increase market value of the City, as the
— tax rate was left unchanged from 1996. Licenses and permits decreased substantially due to
building permits issued for a new school, a church, and an addition to the Lino Lakes
Correctional Facility in 1996. Fines and forfeits increased because of the additional patrol
— officers funded through the COPS grant. Miscellaneous revenues decreased because no bonds
were issued which contribute a 3% administrative fee.
'" General fund expenditures totaled $4,400,087 in 1997 compared to $3,966,738 in 1996. The
breakdown of expenditures is shown in the following table.
Percent
1997 1996 Change
General government $1,366,602 $1,289,751 6.0%
Public safety 1,751,226 1,446,985 21.0%
Public works 756,016 694,455 8.9%
Parks and recreation 526,243 535,547 (1.7 %)
Total $4,400,087 $3,966,738 10.9%
The increase in Public safety is attributed to the addition of one new police officer, and the
— purchase of three squad cars that in the past have been purchased with equipment certificates.
Parks and recreation decreased due to the vacancy of a Park and Recreation Director and
— decrease in purchases of capital outlay.
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The fund balance of the General fund continues to grow as shown below:
Fund
Balance
Expenditure Beginning Percent
Budget Of Year of Budget
1990 $2,155,051 $1,030,053 47.8%
1991 2,268,639 1,169,624 51.6%
1992 2,552,835 1,265,236 49.6%
1993 2,829,202 1,406,296 49.7%
1994 3,169,862 1,756,659 55.4%
1995 3,551,957 1,870,934 52.7%
1996 3,966,738 2,086,231 52.6%
1997 4,400,087 2,723,025 61.9%
The fund balance for the year increased $334,887.
Special Revenue Funds
Economic Development Authority - this fund accounts for personal expenses of the City
Council when acting as the Economic Development Authority.
Community Development Block Grant - accounts for expenditures associated with funds
allocated through Anoka County from the Federal Government to fund allowable projects.
Program Recreation - this fund accounts for the activities of the Recreation Department for
self - supporting programs.
Debt Service Funds
Improvement Bonds - these funds account for debt service payments made on general
obligation debt issued for local improvement projects.
Certificates of Indebtedness - these funds account for debt service payments made on debt
issued to finance capital purchases. These certificates are financed internally.
Public Project Revenue Bonds - established to account for debt service payments related to the
construction of the City's fire hall.
Capital Project Funds
Closed Bond Fund - established to account for all excess bond receipts.
Dedicated Parks - accounts for revenues and expenditures for the acquisition and construction
of park projects. Playground equipment was purchased for City Hall Park, and trails were
paved with these funds in 1997.
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VIEW
Area and Unit Charges - accounts for water and sewer area assessments to be used for the
construction of City utility infrastructure.
Surface Water Management - established to help fund the costs associated with surface water
issues and planning.
Apollo Business Park - accounts for the receipts from the sale of property within the park and
for costs associated with the acquisition.
Town Center /Civic Center Project - established to account for costs associated with the
creation of the "Village ", including: infrastructure, civic buildings and development of the
property for commercial use.
Tax Increment - established to account for projects financed with tax increments. Tax
Increment Districts 1 -1 and 1 -2 were decertified in 1997 with their fund balances transferred to
the Town Center for infrastructure costs.
Enterprise Funds
Water Fund - accounts for the operations of the municipal water system. The following table
illustrates the operations:
Operating revenues
Operating expenses (excluding depreciation)
Operating income (loss)
Percent
1997 1996 Change
$486,387 - $430,997 12.9%
271,575 210,778 28.8%
$214,812 $220,219 (2.5 %)
Increases in revenues are attributed to the additional users on the system.
Sewer Fund - accounts for the operations of the municipal sanitary sewer system. The
following table illustrates the operations:
Operating revenues
Operating expenses (excluding depreciation)
Operating income (loss)
Percent
1997 1996 Change
$628,536 $550,464 14.2%
494,219 398,656 24.0%
$134,317 $151,808 (11.5 %)
Expenditures increased due to the increase in sewage flow that is paid to the Metropolitan
Council Environmental Services division for treatment.
13
Gas Utility - accounts for the City's share of the Circle Pines gas utility that extends into the
community. In 1997, the City investigated into the prospect of collection of gas franchise fees
from all providers within the City.
AGENCY FUNDS
Contractor's Deposits - accounts for the pass-through costs of developer financed projects
within the City.
Pending Assessments - accounts for the receipt of assessment prepayments prior to
certification. This fund is closed annually at certification time. The balance in this fund is the
result of assessments being collected, that will not be certified to Anoka County until the fall of
1998.
Investment Fund - accounts for the pooling of all the City's money that is invested throughout
the year. Interest on investments is recorded in this fund before allocating to all funds. Interest
earned in 1997 was $766,675 compared to $584,838 in 1996.
Deferred Compensation - accounts for employee contributions to the City authorized deferred
compensation plan. Section 457 of the Internal Revenue Code allows public employees to
establish such programs. Beginning in 1997, the City no longer is required to report these
amounts.
GENERAL FIXED ASSETS ACCOUNT GROUP
General fixed assets are those assets used for general governmental functions only. This does
not included enterprise funds. Depreciation is not recorded on the general fixed assets.
GENERAL LONG-TERM DEBT ACCOUNT GROUP
This group reports the current assets available in the Debt Service Funds and recognizes the
amounts to be provided through future tax levies, assessments and tax increments.
CASH MANAGEMENT
Cash temporarily idle during the year was invested in certificates of deposit, commercial paper,
and obligations of the U.S. Treasury. The City's investment policy's primary objective is
safety of principal. Therefore, deposits were insured by Federal depository insurance or were
collateralized. The City Council adopted an amended investment policy in 1997.
DEBT ADMINISTRATION
At year end, the City had a number of debt issues outstanding. These issues included
$1,415,000 of general obligation bonds, $7,455,000 of general improvement bonds with special
assessments pledged and $4,215,000 of revenue bonds. During 1997, the City issued $225,000
of equipment certificates internally, the proceeds of which were used to purchase equipment.
14
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RISK MANAGEMENT
The City's workers' compensation insurance and general property and liability coverage is
provided through the League of Minnesota Cities Trust (LMCIT).
The workers' compensation program is a joint self-insurance plan designed to hold down the
costs and assure coverage is available. Each city deposits a premium at the beginning of the
insurance year determined by calculating estimated payroll and applying experience
modification ratios. An audit is performed at the end of the insurance year, which may produce
a refund or an adjustment due. LMCIT's reserves and rates are reviewed annually by an
actuary to assure that the program remains financially strong.
INDEPENDENT AUDIT
Minnesota State law requires that cities over 2,500 population submit annual financial
statements attested by a certified public accountant or the State Auditor to the State Auditor by
June 30th of the following year. This requirement has been met with the auditors' report of
HLB Tautges Redpath, Ltd. included in this report.
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL
REPORTING
The Government Finance Officers Association of the United State and Canada (GFOA) awards
the Certificate of Achievement for Excellence in Financial Reporting to cities that meet certain
criteria. A governmental unit must publish an easily readable and efficiently organized
comprehensive annual financial report, the contents of which conform to program
requirements. The City of Lino Lakes received its second award for the year ended December
31, 1996. The City is issuing the 1997 report to GFOA for consideration of the Certificate of
Achievement for Excellence in Financial Reporting. We believe our current report conforms to
the program requirements.
ACKNOWLEDGMENTS
The preparation of this report could not have been accomplished without the dedicated services
of the Finance Department.
I also want to express my appreciation to the Mayor and City Council for their responsible
policies involving the financial operation of the City.
Respectfully submitted,
lOttilYL YCIde
Mary M. Vaske
Finance Director
15
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lino Lakes,
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 1996
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
if_ "elo-u-at
4Z,ta President a / 0
yo, Executive Director
17
II.
FINANCIAL
SECTION
19
HLB
Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
We have audited the accompanying general purpose fmancial statements of the City of Lino Lakes, Minnesota, as of
and for the year ended December 31, 1997, as listed in the table of contents. These general purpose fmancial
statements are the responsibility of the City's management. Our responsibility is to express an opinion on these
general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing
Standards as issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the general purpose fmancial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall general purpose financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose fmancial statements referred to above present fairly, in all material respects, the
financial position of the City of Lino Lakes, Minnesota, as of December 31, 1997 and the results of its operations
and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted
accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated June 16, 1998 on our
consideration of the City of Lino Lakes, Minnesota's internal control over fmancial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts and grants.
Our audit was made for the purpose of forming an opinion on the general purpose fmancial statements taken as a
whole. The combining and individual fund and account group fmancial statements, supplementary fmancial
information and statistical section listed in the table of contents are presented for purposes of additional analysis
and are not a required part of the general purpose fmancial statements of the City of Lino Lakes, Minnesota. Such
information, except for that portion marked "unaudited," on which we express no opinion, has been subjected to the
auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly
presented in all material respects in relation to the general purpose financial statements taken as a whole.
HLB TAUTGES REDPATH, LTD.
Certified Public Accountants
April2, 1998
(except for Note 21, as to which the date is June 16, 1998)
4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 612 426 7000 Fax: 612 426 5004
HLB Tautges Redpath, Ltd. is a member of
ernatienal. A wend -wide orgad¢ation of aecpurtniq rams anpt business advisers
21
GENERAL PURPOSE FINANCIAL STATEMENTS
23
CITY OF LINO LAKES, MINNESOTA
COMBINED BALANCE SHEET -
ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 1997
Governmental Fund Types
Special Debt Capital
Assets General Revenue Service Project
Cash and investments $3,045,734 $32,712 $910,323 $10,415,147
Cash and investments with escrow agent - 97,047
Assets with deferred compensation plan administrator
Accrued interest receivable -
Accounts receivable 66,353 91,472
Deposits receivable -
Due from other governmental units 95,782 15,812 416,485
Interfund receivable - 2,015,037
Taxes receivable:
Delinquent 29,500 -• 2,228 870
Due from County 33,994 - 2,405 4,193
Delinquent tax increment - - - 2,726
Special assessments receivable - 1,892,049 3,615,567
Prepaid items 99,820 323 2,318
Land held for resale - 989,506
Fixed assets (net of accumulated depreciation) -
Amount available in Debt Service Fund
Amount to be provided for retirement of GLTD -
Total assets $3,371,183 $48,847 $2,904,052 $17,553,321
Liabilities, equity and other credits
Liabilities: _
Interfund payable $ - $6,282 $ - $1,873,797
Accounts payable 197,612 3,823 263 306,426
Salaries payable 67,716 619
Contracts payable - 312,462
Accrued interest payable
Deposits payable - -
Due to other governmental units 12,564 512,120
Deferred revenue 35,379 1,894,277 3,615,244
Bonds payable - -
Contract for deed payable
Compensated absences payable
Deferred compensation payable
Total liabilities 313,271 10,724 1,894,540 6,620,049
Equity and other credits:
Contributed capital
Invested in general fixed assets
Retained earnings - unreserved
Fund balance (deficit):
Reserved 99,820 323 1,009,512 991,824
Unreserved:
Designated 2,958,092 37,800 10,954,127
Undesignated - - (1,012,679)
Total equity and other credits 3,057,912 38,123 1,009,512 10,933,272
24
Total liabilities, equity and other credits $3,371,183 $48,847 $2,904,052 $17,553,321
The accompanying notes are an integral part of these financial statements.
Statement 1
Proprietary Fiduciary Account Groups Totals
Fund Type Fund Type General General Long- (Memorandum Only)
Enterprise Agency Fixed Assets Term Debt 1997 1996
$900,497 $281,237 $ - $ - $15,585,650 $15,473,600
- - 97,047 92,813
- 467,350
- 117,717 117,717 87,323
288,815 446,640 352,599
85,388 85,388 160,939
100,738 - 628,817 1,117,034
- 2,015,037 1,040,283
32,598 22,490
40,592 27,701
- 2,726 1
330,547 5,838,163 4,809,003
32,596 135,057 114,160
989,506 -
18,876,437 5,028,609 - 23,905,046 22,651,615
- 1,009,512 1,009,512 341,544
9,010,771 9,010,771 8,900,771
$20,529,630 $484,342 $5,028,609 $10,020,283 $59,940,267 $55,659,226
$17,241 $117,717 $ - $ - $2,015,037 $1,040,283
35,536 16,681 560,341 237,604
4,058 - 72,393 60,562
124,195 436,657 814,977
95,488 - 95,488 68,574
349,944 349,944 345,686
36,530 - 561,214 505,344
- 5,544,900 4,836,852
4,215,000 8,870,000 13,085,000 13,318,000
946,020 946,020 -
9,219 204,263 213,482 200,950
- - - 467,350
4,537,267 484,342 0 10,020,283 23,880,476 21,896,182
14,499,775 - 14,499,775 14,781,682
5,028,609 5,028,609 4,126,153
1,492,588 - 1,492,588 1,027,830
2,101,479 451,982
13,950,019 12,830,437
(1,012,679) 544,960
15,992,363 0 5,028,609 0 36,059,791 33,763,044
$20,529,630 $484,342 $5,028,609 $10,020,283 $59,940,267 $55,659,226
■
The accompanying notes are an integral part of these financial statements.
25
CITY OF LINO LAKES, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES
For The Year Ended December 31, 1997
Statement 2
Revenue:
General property taxes
Tax increments
Licenses and permits
Intergovernmental
Special assessments
Charges for services
Fines and forfeits
Interest on investments
Refunds and reimbursements
Miscellaneous
Total revenue
Expenditures:
Current:
General government
Public safety
Public works
Parks, recreation and forestry
Capital outlay:
General government
Public safety
Public works
Parks, recreation and forestry
Debt service:
Principal
Interest and fiscal charges
Construction/acquisition
Total expenditures
Revenue over (under) expenditures
Other financing sources (uses):
Operating transfer in
Operating transfer out
Debt proceeds
Total other financing sources
Net increase in fund balance
Fund balance - January 1
Residual equity transfer in
Residual equity transfer out
Fund balance - December 31
Special
General Revenue
$2,658,485 $ -
566,561
881,459 44,469
291,090 94,188
99,390 -
108,212 1,538
54,688
90,089
4,749,974 140,195
1,312,066 38,145
1,661,090
727,019
498,166 83,664
54,536
90,136
28,997
28,077 17,741
4,400,087 139,550
349,887 645
(15,000)
(15,000)
334,887
2,723,025
$3,057,912
Debt Capital
Service Project
$279,345 $1,745
498,529
40,553 288,914
974,795 1,895,715
213,642
16,916 586,185
141,023
462,606
1,311,609 4,088,359
408,000
473,398
881,398
Totals
(Memorandum Only)
1997
$2,939,575
498,529
566,561
1,255,395
2,870,510
598,920
99,390
712,851
195,711
552,695
10,290,137
1,065,522 2,415,733
1,661,090
37,573 764,592
581,830
53,022
109,120
489,050
90,646
2,983,749
4,828,682
107,558
199,256
518,047
136,464
408,000
473,398
2,983,749
10,249,717
1996
$2,631,577
378,307
788,480
1,795,541
2,123,583
622,606
86,158
538,045
333,916
199,186
9,497,399
1,490,856
1,438,478
723,696
508,331
176,066
113,131
103,816
117,734
2,483,000
397,061
3,408,812
10,960,981
430,211 (740,323) 40,420 (1,463,582)
15,000 257,000
15,000
15,645
22,478
(257,000)
1,171,020
257,000 914,020
272,000
(272,000)
1,171,020
1,171,020
46,122
(46,122)
4,866,978
4,866,978
687,211 173,697 1,211,440 3,403,396
341,544 10,740,332 13, 827,379 10,423,983
846,211 846,211
(19,243) (826,968) (846,211)
1 ,872,084
(1,872,084)
$38,123 $1,009,512 $10,933,272 $15,038,819 $13,827,379
26 The accompanying notes are an integral part of these financial statements.
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CITY OF LINO LAKES, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL AND SPECIAL REVENUE FUND TYPES
For The Year Ended December 31, 1997
Statement 3
Special Revenue Fund -
General Program Recreation
Over Over
(Under) (Under)
Budget Actual Budget Budget Actual Budget
Revenue:
General property taxes $2,658,110 $2,658,485 $375 $ - $ $ -
Licenses and permits 548,270 566,561 18,291
Intergovernmental 844,980 881,459 36,479
Charges for services 288,950 291,090 2,140 64,471 93,081 28,610
Fines and forfeits 95,000 99,390 4,390 - - -
Interest on investments 60,000 108,212 48,212 1,538 1,538
Refunds and reimbursements 42,000 54,688 12,688 - -
Gas franchise fees 32,500 42,495 9,995
Cable TV 28,000 17,926 (10,074)
Miscellaneous 28,000 29,668 1,668
Total revenue 4,625,810 4,749,974 124,164 64,471 94,619 30,148
Expenditures:
Current:
General government 1,378,070 1,312,066 (66,004)
Public safety 1,672,810 1,661,090 (11,720)
Public works 763,350 727,019 (36,331)
Parks, recreation and forestry 506,990 498,166 (8,824) 50,449 83,664 33,215
Capital outlay:
General government 50,460 54,536 4,076
Public safety 86,410 90,136 3,726
Public works 28,630 28,997 367
Parks, recreation and forestry 36,190 28,077 (8,113) 3,119 3,119
Total expenditures 4,522,910 4,400,087 (122,823) 50,449 86,783 36,334
Revenue over (under) expenditures 102,900 349,887 246,987 14,022 7,836 (6,186)
Other financing sources (uses):
Operating transfer to Capital Project Funds (15,000) (15,000)
Total other financing sources (uses) (15,000) (15,000) 0 0 0 0
Net increase (decrease) in fund balance $87,900 334,887 $246,987 $14,022 7,836 ($6,186)
Fund balance - January 1 2,723,025 22,312
Fund balance - December 31 $3,057,912 $30,148
The accompanying notes are an integral part of these financial statements. 27
CITY OF LINO LAKES, MINNESOTA
COMBINED STATEMENT OF REVENUE, EXPENSES AND
CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES
For The Year Ended December 31, 1997
Statement 4
Enterprise Funds
1997 1996
Operating revenue:
Water sales $452,438 $401,889
Sewer charges 602,349 527,507
Other operating revenue 60,136 52,065
Total operating revenue 1,114,923 981,461
Operating expenses:
Personal services 154,387 145,181
Materials and supplies 98,421 42,286
Contractual services 79,976 74,332
Repair and maintenance 42,731 8,576
MCES sewer charges 297,202 260,421
Depreciation:
Purchased assets 31,768 29,550
Contributed assets 334,208 299,864
Utilities 95,832 83,672
Other 3,177 3,851
Total operating expenses 1,137,702 947,733
Net income (loss) from operations (22,779 33,728
Other income (expense):
Interest on investments - 53,824 46,793
Special assessments 329,405 -
Bond interest (229,375) (144,228)
Paying agent fees (525) (26,653)
Total other income (expense) 153,329 (124,088)
Net income (loss) 130,550 (90,360)
Credit arising from transfer of depreciation
to contributions from property owners 334,208 299,864
Retained earnings - January 1 1,027,830 818,326
Retained earnings - December 31 $1,492,588 $1,027,830
28 The accompanying notes are an integral part of these financial statements.
- CITY OF LINO LAKES, MINNESOTA
COMBINED STATEMENT OF CASH FLOWS -
ALL PROPRIETARY FUND TYPES
For The Year Ended December 31, 1997
Vmo
Statement 5
Enterprise Funds
1997 1996
Cash flows from operating activities:
Operating income (loss) ($22,779) $33,728
Adjustments to reconcile operating income (loss) to
net cash flows from operating activities:
_, Depreciation 365,976 329,414
Change in assets and liabilities:
Decrease (increase) in receivables (79,610) (5,354)
Decrease (increase) in prepaid items (28,874) 25,115
Increase (decrease) in payables (466,448) 650,346
Net cash flows from operating activities (231,735) 1,033,249
- Cash flows from capital and related fmancing activities:
Principal paid on revenue bonds (50,000) (50,000)
Interest and paying agent fees on revenue bonds (202,986) (88,887)
Proceeds from issuance of bonds 3,283,495
Acquisition of fixed assets (664,650) (2,779,811)
Net cash flows from capital and related fmancing activities (917,636) 364,797
Wm.
limor
Cash flows from investing activities:
Interest on investments 53,824 43,458
Net increase (decrease) in cash and cash equivalents (1,095,547) 1,441,504
Cash and cash equivalents - January 1 1,996,044 554,540
Cash and cash equivalents - December 31 $900,497 $1,996,044
Noncash investing, capital and financing activities:
- Water and Sewer lines in the amount of $52,301 and $1,573,535 were contributed to the Water and Sewer Funds in 1997
and 1996 respectively.
- Special assessments in the amount of $329,383 were levied in 1997.
The accompanying notes are an integral part of these financial statements. 29
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Lino Lakes is a public corporation formed under Minnesota Statute 410. As such the City is under
home rule charter regulations and applicable statutory guidelines.
The fmancial statements of the City of Lino Lakes have been prepared in conformity with generally accepted
accounting principles as applied to governmental units by the Governmental Accounting Standards Board
(GASB). The following is a summary of the significant accounting policies.
A. FINANCIAL REPORTING ENTITY
As required by generally accepted accounting principles, the fmancial statements of the reporting
entity include those of the City of Lino Lakes and its component units. Generally, component units
are legally separate organizations for which the officials of the primary government are financially
accountable.
COMPONENT UNITS
In conformity with generally accepted accounting principles, the fmancial statements of component
units have been included in the fmancial reporting entity either as blended component units or as
discretely presented component units.
Blended Component Units. The Economic Development Authority (EDA) of Lino Lakes is an entity
legally separate from the City. However, for fmancial reporting purposes, the EDA is reported as if it
were part of the City's operations because the members of the City Council serve as commission
members. The EDA does not issue separate fmancial statements.
Housing and Redevelopment Authority (HRAI. The HRA of Lino Lakes is an entity legally separate
from the City. However, for fmancial reporting purposes, the HRA is reported as if it were part of the
City's operations because the members of the City Council serve as the governing board of the HRA.
The HRA has not yet incurred any fmancial activity.
B. FUND ACCOUNTING
The accounting system of the City is organized and operated on a fund basis. A fund is defined as a
fiscal and accounting entity with a self - balancing set of accounts recording cash and other financial
resources, together with all related liabilities and residual equities or balances, and changes therein,
which are segregated for the purpose of carrying on specific activities or attaining certain objectives in
accordance with special regulations, restrictions or limitations.
The following types of funds and account groups are employed by the City:
GOVERNMENTAL FUNDS
General Fund - to account for all fmancial resources except those required to be accounted for
in another fund.
Special Revenue Funds - to account for the proceeds of specific revenue sources that are
legally restricted to expenditures for specified purposes.
31
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
Debt Service Funds - to account for the accumulation of resources for, and the payment of,
general long -term debt principal, interest, and related costs.
Capital Project Funds - to account for fmancial resources to be used for the acquisition or
construction of major facilities other than those financed by Proprietary Funds.
PROPRIETARY FUNDS
Enterprise Funds - to account for operations: (a) that are financed and operated in a manner
similar to private business enterprises - where the intent of the governing body is that the
costs (expenses, including depreciation) of providing goods or services to the general public
on a continuing basis be financed or recovered primarily through user charges; or, (b) where
the governing body has decided that periodic determination of revenues earned, expenses
incurred, and/or net income is appropriate for capital maintenance, public policy,
management control, accountability, or other purposes.
FIDUCIARY FUNDS
Trust and Agency Funds - to account for assets held by a governmental unit in a trustee
capacity or as an agent for individuals, private organizations, other governmental units,
and/or other funds. For the City of Lino Lakes, these consist solely of Agency Funds.
ACCOUNT GROUPS
The governmental fund types are designed to account for the financial flow of a particular
fund; therefore, they generally include only current assets and current liabilities on their
balance sheets. The City maintains two account groups to account for noncurrent assets and
long -term liabilities as follows:
General Fixed Assets - The City maintains a separate account group which contains the fixed
assets used in the governmental fund type operations. They are assets of the City as a whole
and not of individual funds.
General Long -Term Debt - This account group contains the long -term obligations of the City
including general obligation bonds, certificates of indebtedness, contracts payable and
compensated absences payable. These long -term liabilities are expected to be fmanced by the
governmental funds.
C. BASIS OF ACCOUNTING
The accounting and reporting treatment applied to a fund is determined by its measurement focus. All
governmental funds are accounted for on a current fmancial resources measurement focus. This
means that only current assets and current liabilities are generally included on their balance sheets.
Governmental fund operating statements present increases (revenues and other financing sources) and
decreases (expenditures and other financing uses) in net current assets.
32
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
All Proprietary Funds are accounted for on a flow of economic resources measurement focus. This
means that all assets and all liabilities (whether current or noncurrent) associated with this activity are
included on their balance sheets. Their reported fund equity (net total assets) is segregated into
contributed capital and retained earnings components. Proprietary fund type operating statements
present increases (revenues) and decreases (expenses) in net total assets.
The modified accrual basis of accounting is followed by the City for its Governmental Funds and
Fiduciary Funds. Under this method of accounting, revenues are recognized when they become
susceptible to accrual - that is, when they become both measurable and available to fmance
expenditures of the fiscal period. "Measurable" means the amount of the transaction can be
determined and "available" means collectible within the current period or soon enough thereafter to be
used to pay liabilities of the current period. Major revenue sources susceptible to accrual include
property taxes (excluding delinquent taxes received over 60 days after year end), special assessments,
intergovernmental revenues, charges for services and interest on investments. Major revenue sources
not susceptible to accrual include licenses and permits, fees, and miscellaneous revenues. Such
revenues are recorded as revenue when received because they are not measurable until collected.
Expenditures are generally recognized in the accounting period when the fund liability is incurred,
except for interest on general long -term debt which is recognized when due.
The accrual basis of accounting is followed for the Proprietary Funds. Under this method of
accounting, revenues are recognized during the accounting period in which they are earned and
become measurable and expenses are recognized in the accounting period in which they are incurred if
measurable. Governmental Accounting Standards Board (GASB) Statement #20, Accounting and
Financial Reporting for Proprietary Funds and Other Governmental Entities that Use Proprietary
Funds, provides proprietary activities with a choice of authoritative guidance issued after November
30, 1989. The City of Lino Lakes has elected to follow GASB pronouncements exclusively after that
date.
The City reports deferred revenue on its combined balance sheet. Deferred revenues arise when a
potential revenue does not meet both the "measurable" and "available" criteria for recognition in the
current period. Deferred revenues also arise when resources are received by the government before it
has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying
expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the
government has a legal claim to the resources, the liability for deferred revenue is removed from the
combined balance sheet and revenue is recognized.
The City has reported as deferred revenues the amount of $5,544,900, which consists of the following:
Oakwilt Suppression/PERA Aid $5,880
Property taxes receivable 35,323
Special assessments receivable 5,503,697
Total $5,544,900
Iwo
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33
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
D. BUDGETS
Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual
appropriated budgets are adopted for the General Fund and the Program Recreation Special Revenue
Fund.
Budgeted amounts are reported as originally adopted, or as amended by the City Council. Individual
amendments were not material in relation to the original appropriations which were adjusted.
Budgeted expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not
employed by the City because it is at present not considered necessary to assure effective budgetary
control or to facilitate effective cash management.
E. LEGAL COMPLIANCE - BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the fmancial
statements:
1. The City Administrator submits to the City Council a proposed operating budget for the fiscal
year commencing the following January 1. The operating budget includes proposed
expenditures and the means of fmancing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can
be expended by each department based upon detailed budget estimates for individual
expenditure accounts.
4. Additional interdepartmental or interfund appropriations and deletions are or may be
authorized by the City Council with fund (contingency) reserves or additional revenues.
5. Formal budgetary integration is employed as a management control device during the year for
the General Fund and the Program Recreation Special Revenue Fund.
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies
for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to
determine and calculate user charges. These debt service and budget amounts represent
general obligation bond indenture provisions and net income for operation and capital
maintenance and are not reflected in the fmancial statements.
7. A capital improvement program is reviewed periodically by the City Council for the Capital
Project Funds. However, appropriations for major projects are not adopted until the actual
bid award of the improvement. The appropriations are not reflected in the fmancial
statements.
8. Expenditures may not legally exceed budgeted appropriations at the total fund level.
Monitoring of budgets is maintained at the expenditure category level (i.e., personal services,
supplies; other services and charges; capital outlay) within each activity.
9. The City Council may authorize transfer of budgeted amounts between City funds.
34
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
F. CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in
authorized investments. Earnings from investments are allocated to individual funds on the basis of
the fund's equity m the cash and investment pool.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund shown as interfund receivables in the advancing fund, and an interfund
payable in the fund with the deficit, until adequate resources are received.
Investments are stated at cost (plus interest added, if any) except for assets of the Deferred
Compensation Plan which are reported at market value. Material purchase discounts and premiums
are amortized over the term of the investment. Interest earnings are accrued at the balance sheet date.
For purposes of the statement of cash flows the Proprietary Fund considers all highly liquid
investments with a maturity of three months or less when purchased to be cash equivalents. All of the
cash and investments allocated to the proprietary fund types have original maturities of 90 days or less.
Therefore the entire balance m such fund types is considered cash equivalents.
G. HOMESTEAD CREDIT AND AGRICULTURAL CREDIT AID (HACA)
Property taxes on homestead property (as defined by State Statutes) are partially reduced by HACA.
This credit is paid to the City by the State in lieu of taxes levied against homestead property. The State
remits this credit through installments each year. The credit is recognized as revenue by the City at the
time of collection.
H. LOCAL GOVERNMENT AID REVENUE RECOGNITION
Local government aid is provided to the City by the State as a shared tax based upon a statutory
formula and without restrictions. Payment from the State is generally received during each calendar
year for that calendar year. The City recognizes local government aid revenue when it becomes both
measurable and available to fmance current operations. In practice, local government aid is
recognized as revenue as it is received in cash.
I. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December
(levy /assessment date) of each year for collection in the following year. The County is responsible for
billing and collecting all property taxes for itself, the City, the local School District and other taxing
authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that
date. Real property taxes are payable (by property owners) on May 15 and October 15 of each
calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each
year. These taxes are collected by the County and remitted to the City on or before July 15 and
December 15 of the same year. Delinquent collections for November and December are received the
following January. The City has no ability to enforce payment of property taxes by property owners.
The County possesses this authority.
35
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
The City recognizes property tax revenue when it becomes both measurable and available to fmance
expenditures of the current period. In practice, current and delinquent taxes and State credits received
by the City in July, December and the following January are recognized as revenue for the current
year. Taxes and credits not received at the year end are classified as delinquent and due from County
taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by
deferred revenue because it is not available to finance current expenditures.
The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal
Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of
the taxable valuation of commercial/industrial real property to various taxing authorities within the
defined metropolitan area. The valuation "shared" is a portion of commercial/industrial property
valuation growth since 1971. Property taxes paid to the City through this formula for 1997 and 1996
totaled $422,449 and $386,911 respectively. Receipt of property taxes from this "fiscal disparities
pool" does not increase or decrease total tax revenue.
J. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of
special assessment improvement projects in accordance with State Statutes. These assessments are
collectible by the City over a term of years usually consistent with the term of the related bond issue.
Collection of annual installments (including interest) is handled by the County Auditor in the same
manner as property taxes. Property owners are allowed to (and often do) prepay future installments
without interest or prepayment penalties.
Revenue from special assessments is recognized by the City when it becomes measurable and
available to fmance expenditures of the current fiscal period. In practice, current and delinquent
special assessments received by the City are recognized as revenue for the current year. Special
assessments are collected by the County and remitted by December 31 (remitted to the City the
following January) and are also recognized as revenue for the current year. All remaining delinquent,
deferred and special deferred assessments receivable in governmental funding are completely offset by
deferred revenues.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that
property until full payment is made or the amount is determined to be excessive by the City Council or
court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit
sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the
City in payment of delinquent special assessments. Generally, the City will collect the full amount of
its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a
property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or
seasonal recreational land in which event the property is subject to such sale after five years.
K. INVENTORIES
The original cost of materials and supplies has been recorded as expenditures /expenses at the time of
purchase of both the Governmental and Proprietary Funds. These funds do not maintain material
amounts of materials and supplies.
36
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
L. FIXED ASSETS
GENERAL FIXED ASSETS
General fixed assets are recorded as expenditures of the Governmental Funds at the time of purchase.
Such assets are capitalized at historical cost or estimated historical cost in the General Fixed Asset
Account Group. Public Domain ( "infrastructure ") general fixed assets consisting of roads, bridges,
curbs, gutters, streets, sidewalks, drainage systems and lighting systems are excluded from general
fixed assets as these assets are immovable and of value only to the City. Gifts or contributions are
recorded in general fixed assets at fair market value at the time received. No depreciation has been
provided on general fixed assets.
PROPRIETARY FUNDS
Fixed assets of the Proprietary Funds are stated at historical cost, estimated historical cost, or in the
case of contributions, at fair market value at the time received. Depreciation has been provided using
the straight -line method over the estimated useful lives of assets, as follows:
Purchased assets:
Water 5 - 50 years
Sewer 5 - 25 years
Contributed assets:
Water 20 - 50 years
Sewer 20 - 50 years
Fixed assets of the water and sewer utility operations include the water distribution system and sewage
collection system. These systems have been wholly (or substantially) financed by non - operating funds
(special assessments, general taxes; federal and state grants, and other sources) and contributed to the
sewer and water operating funds. City policy is to fmance these assets by the sources indicated rather
than by user charges. Accordingly, the water and sewer user rates are not established at levels
sufficient to cover depreciation on these assets.
Depreciation on these assets is shown in the operating statements; however, the depreciation is
eventually transferred against the contribution account rather than retained earnings in accordance with
generally accepted accounting principles. Consequently, the contribution account reflects the net book
value of contributed assets rather than the original cost of such assets.
M. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate eamed but unused vacation and sick pay
benefits. Amounts that are expected to be liquidated with expendable available financial resources is
reported as an expenditure and a fund liability of the governmental fund that will pay it. Amounts that
are not expected to be liquidated with expendable available financial resources are reported in the
General Long -Term Debt Account Group. No expenditure is reported for these amounts. An unpaid
vacation and severance pay is payable when used or upon termination of employment. In accordance
with the provisions of Statement of Govemment Accounting Standards No. 16, Accounting for
Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive sick pay
benefits. Sick leave is payable when used and in some cases upon termination of employment. For
several employees, sick leave is payable upon retirement or termination in accordance with the terms
of their employment contracts. The remaining sick leave amounts are not recorded as liabilities
because payment is not probable.
37
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
N. LONG -TERM OBLIGATIONS
Long -term debt is recognized as a liability of a governmental fund when due, or when resources have
been accumulated in the Debt Service Fund for payment early in the following year. For other long-
term obligations, only that portion expected to be fmanced from expendable available financial
resources is reported as a fund liability of a governmental fund. The remaining portion of such
obligations is reported in the General Long -Term Debt Account Group. Long -term liabilities expected
to be fmanced from proprietary fund operations are accounted for in those funds.
O. FUND EQUITY
Contributed capital is recorded in Proprietary Funds that have received capital grants or contributions
from developers, customers or other funds. Reserves represent those portions of fund equity not
appropriable for expenditure or legally segregated for a specific future use. Designated fund balances
represent tentative plans for future use of fmancial resources.
P. INTERFUND TRANSACTIONS
Quasi - external transactions are accounted for as revenues, expenditures or expenses. Transactions that
constitute reimbursements to a fund for expenditures /expenses initially made from it that are properly
applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as
reductions of expenditures /expenses in the fund that is reimbursed.
All other interfund transactions, except quasi - external transactions and reimbursements, are reported as
transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity
transfers. All other interfund transfers are reported as operating transfers.
Q. MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the General Purpose Financial Statements are captioned "Memorandum Only" to
indicate that they are presented only to facilitate fmancial analysis. Data in these columns do not
present fmancial position, results of operations or changes in cash flows in conformity with generally
accepted accounting principles. Neither are such data comparable to a consolidation. Interfund
eliminations have not been made in the aggregation of this data.
38
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
Note 2 DEPOSITS AND INVESTMENTS
DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by
the City Council, all of which are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The
market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds
(140% in the case of mortgage notes pledged).
Authorized collateral includes the legal investments described below, as well as certain first mortgage
notes, and certain other state or local government obligations. Minnesota Statutes require that securities
pledged as collateral be held in safekeeping by the City Treasurer or in a fmancial institution other than
that furnishing the collateral.
At year -end, the carrying amount of the City's deposits was $1,033,858 and the bank balance was
$1,042,992. The entire bank balance was covered by Federal depository insurance or by collateral held by
the City's agent in the City's name.
INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities,
or organizations created by an act of congress, excluding mortgage- backed securities defined as high
risk.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and
whose only investments are in securities described in (a) above, general obligation tax- exempt
securities, or repurchase or reverse repurchase agreements.
c) General obligations of the State of Minnesota or any of its municipalities.
d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest
quality, and maturing in 270 days or less.
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker - dealers; or, a
bank qualified as a depositor.
RENEW
39
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
Balances at December 31, 1997:
Custodial Credit Risk Category Carrying Market
Securities Type 1 2 3 Amount Value
Commercial paper $2,925,926 $ - $ $2,925,926 $2,942,243
U.S. government and agency securities 10,854,055 10,854,055 10,781,367
Municipal bond 675,000 675,000 696,000
Totals $14,454,981 $0 $0 14,454,981 14,419,610
Investments not subject to categorization:
Mutual funds 193,098 193,098
Total investments 14,648,079 $14,612,708
Deposits 1,033,858
Petty cash 760
Totals $15,682,697
A reconciliation of cash and investments as shown on the combined balance sheet is as follows:
Cash and investments
Cash and investments with escrow agent
$15,585,650
97,047
Total $15,682,697
The City's investments are categorized above to give an indication of the level of custodial credit risk
assumed at year -end. Category 1 includes investments that are insured or registered or for which the
securities are held by the City or its agent in the City's name. Category 2 includes uninsured or
unregistered investments for which the securities are held by the counterparty's trust department or
agent in the City's name. Category 3 includes uninsured and unregistered investments for which the
securities are held by the counterparty or by its trust department or agent but not in the City's name.
Cash and investments with escrow agent consist of undisbursed proceeds of the Public Project Bonds
of 1990 which are restricted for the payment of debt associated with the City's fire station.
40
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
Note 3 FIXED ASSETS
A summary of changes in general fixed assets is as follows:
Balance Balance
1/1/97 Additions Deletions 12/31/97
Land and improvements $649,600 $447,876 $ - $1,097,476
Buildings 1,539,500 206,568 1,746,068
Equipment and furniture 190,653 123,976 1,516 313,113
Other 425,410 60,765 - 486,175
Vehicles 806,661 135,490 69,017 873,134
Machinery/shop equipment 514,329 11,948 13,634 512,643
Totals $4,126,153 $986,623 $84,167 $5,028,609
A sununary of Proprietary Fund fixed assets at December 31, 1997 is as follows:
Gas
Water Sewer Utility Total
Buildings and structures $48,690 $ - $ - $48,690
Machinery and equipment 97,098 65,145 162,243
Water and sewer lines 7,702,000 9,771,617 17,473,617
— Construction in progress 3,367,050 3,367,050
Acquisition costs - gas utility - 2,375 2,375
Total 11,214,838 9,836,762 2,375 21,053,975
Less: Accumulated depreciation (944,828) (1,232,710) - (2,177,538)
Net fixed assets
glawo
Immo
UMW
Mow
$10,270,010 $8,604,052 $2,375 $18,876,437
41
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
Note 4 CITY INDEBTEDNESS
The following is a schedule of changes in City indebtedness for the year ended December 31, 1997:
Balance Balance
1/1/97 Additions Deletions 12/31/97
General Long Term Debt Account Group:
Bonded debt:
General obligation $1,378,000 $225,000 $188,000 $1,415,000
Special assessment 7,675,000 - 220,000 7,455,000
Contracts for deed payable - 946,020 - 946,020
Compensated absences payable 189,315 14,948 204,263
Total general long term debt 9,242,315 1,185,968 408,000 10,020,283
Proprietary Fund:
Revenue bond 4,265,000 50,000 4,215,000
Compensated absences 11,635 2,416 9,219
Total $13,518,950 $1,185,968 $460,416 - $14,244,502
All long -term bonded indebtedness outstanding at December 31, 1997 is backed by the full faith and credit of
the City, including special assessment bond issues. Delinquent assessments receivable at December 31, 1997
totaled $5,692.
The annual requirement tv amortize all bonded debt outstanding at December 31, 1997 including interest
payments of $4,559,834 is as follows:
1998 1999 2000 2001 2002 2003 and on Total
General Obligation Bonds $296,041 $281,738 $194,413 5135,706 $130,625 $974,188 $2,012,711
Special Assessment Bonds 933,540 1,243,400 1,184,645 1,144,858 1,103,645 3,791,980 9,402,068
Revenue Bonds 366,347 423,111 417,937 421,906 419,975 4,180,779 6,230,055
Total $1,595,928 $1,948,249 $1,796,995 $1,702,470 $1,654,245 $8,946,947 $17,644,834
It is not practicable to determine the specific year for payment of compensated absences payable.
42
vow
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
City indebtedness at December 31, 1997 is composed of the following:
Final
Issue Maturity interest Original Payable
Date Date Rates Issue 12/31/97
General Obligation Bonds:
1996 Equipment Certificates 2/1/96 12/31/99 6.00% $225,000 $150,000
1997 Equipment Certificates 2/1/97 12/31/00 6.00% 225,000 225,000
Public Project Revenue Bonds - 1990A 10/1/90 2/1/10 7.12% 1,115,000 1,040,000
Total General Obligation Bonds 1,565,000 1,415,000
Special Assessment Bonds:
G. 0. Improvement Refunding Bonds, Series I992A 4/1/92 2/1/06 6.51% 3,640,000 2,770,000
G. O. Improvement Bonds 1996A 10/1/96 2/1/97 5.05% 4,685,000 4,685 000
Total Special Assessment Bonds 8,325,000 7,455,000
Revenue Bonds:
G. O. Water Revenue Bonds, Series 1992B 4/1/92 2/1/08 6.67% 1,060,000 895,000
G. O. Water Revenue Bonds, Series 1996B 10/1/96 2/1/12 5.48% 3,320,000 3,320,000
Total Revenue Bonds 4,380,000 4,215,000
Total - All Bonds 14,270,000 13,085,000
Contract for deed 4/30/97 1/31/02 8.00% 598,382 598,382
Contract for deed 12/1/97 12/1/02 8.00% 347,638 347,638
~' Compensated absences payable N/A 213,482
allow
Total Indebtedness $15,216,020 S14,244,502
Note 5 LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable
principally from property taxes. The City of Lino Lake's legal debt margin for 1997 and 1996 is computed as
follows:
December 31,
1997 1996
Market value $627,423,800 $552,696,200
Applicable percentage 2% 2%
Debt limit 12,548,476 11,053,924
Amount of debt applicable to debt limit:
Total bonded debt 13,085,000 13,318,000
Less: Special assessment bonds (7,455,000) (7,675,000)
Public project revenue bonds (1,040,000) (1,065,000)
Cash and investments in
Debt Service Funds (4,417) (13,703)
Revenue bonds (4,215,000) (4,265,000)
Total debt applicable to debt limit 370,583 299,297
Legal debt margin
$12,177,893 $10,754,627
43
CITY OF LINO LAKES, i1IIINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
Note 6 DEFINED BENEFIT PENSION PLANS - STATEWIDE
A. PLAN DESCRIPTION
All full -time and certain part-time employees of the City of Lino Lakes are covered by defined benefit
plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire
Fund (PEPFF) which are cost - sharing, multiple- employer retirement plans. These plans are
established and administered in accordance with Minnesota Statute, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members
are covered by Social Security and Basic Plan members are not. All new members must participate in
the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership
by statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by State Statute, and vest after three years of
credited service. The defined retirement benefits are based on a member's highest average salary for
any five successive years of allowable service, age, and years of credit at termination of service.
PERA issues a publicly available financial report that includes fmancial statements and required
supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA,
514 St. Peter Street #200, St. Paul, Minnesota, 55102 or by calling (612)296 -7460 or 1- 800 -652 -9026.
B. FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These
statutes are established and amended by the state legislature. The City makes annual contributions to
the pension plans equal to the amount required by state statutes. PERF Basic Plan members and
Coordinated Plan members are required to contribute 8.23% and 4.23 %, respectively, of their annual
covered salary. PEPFF members are required to contribute 7.60% of their annual covered salary. The
City of Lino Lakes is required to contribute the following percentages of annual covered payroll:
10.73% for Basic Plan PERF members, 4.48% for Coordinated Plan PERF members, and 11.40% for
PEPFF members. The City's contributions for the three years ending June 30, 1997, 1996, and 1995
which were equal to the contractually required contributions for each year as set by state statute are as
follows:
Year
Ended PERF PEPFF
6/30/95 $51,169 $61,611
6/30/96 55,923 69,007
6/30/97 60,677 87,604
Note 7 METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES
During 1971, the Metropolitan Waste Control Commission (MWCC) was organized to provide for
consolidation of the sanitary sewer collection, treatment and disposal in the seven county metropolitan area
surrounding Minneapolis and St. Paul. Previously, these operations were maintained by the city governments
on an individual or collective basis. The MWCC merged with the Metropolitan Council during 1994 to form
Metropolitan Council Wastewater Services (MCWS) and is now called the Metropolitan Council
Environmental Services (MCES).
44
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
The MCES bills the City annually based upon estimated volume and budgeted costs. These billings are later
adjusted when actual volume and actual costs are determined. The adjustment to actual is generally determined
in the succeeding calendar year and payable by the City in the second succeeding calendar year. The City
follows the accounting policy of recognizing these charges as an expense of the sewer utility operation in the
year for which they are billed (for estimated billings) and in the year the adjustments are determined (for
adjustments from estimated to actual billings).
Note 8 RECONCILIATION OF CONTRIBUTED CAPITAL
Changes to contributed capital during the year are as follows:
Depreciation
Beginning Capital on Contributed Ending
Balance Contributions Assets Balance
Water $6,047,749 $25,484 ($137,569) $5,935,664
Sewer 8,733,933 26,817 (196,639) 8,564,111
Total $14,781,682 $52,301 ($334,208) $14,499,775
Note 9 DEFERRED COMPENSATION PLAN
The City offers its employees deferred compensation plans created in accordance with Internal Revenue Code
Section 457. The plans, available to all employees, permit them to defer a portion of their salary until future
years. The deferred compensation is not available to the employees until termination, retirement, death or
unforeseeable emergency.
On August 20, 1996 the provisions of Internal Revenue Code Section 457 were amended to enable plans to
hold all assets and income of the plan in trust for the exclusive benefit of participants and their beneficiaries.
These assets were previously required to be held as property of the City. The Govemmental Accounting
Standards Board (GASB) issued Statement 32 in October 1997. This Statement rescinds GASB Statement 2
which required deferred compensation plans to be presented as Agency Funds within the City's fmancial
statements. GASB 32 is effective for the year ended December 31, 1999 or on the date (if earlier) that the plan
changes its trust provisions. In 1997, all City plan's were amended to hold the plan assets in trust for the plan
participants and their beneficiaries. The deferred compensation Agency Fund is therefore closed at December
31, 1997.
Mow
45
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
Note 10 SEGMENT INFORMATION
The City maintains three Enterprise Funds which provide water, sanitary sewer and gas utility services.
Segment information for the year ended December 31, 1997 is as follows:
Water Sewer Gas
Utility Utility Utility Total
Operating revenue $486,387 $628,536 $ - $1,114,923
Depreciation expense 164,096 201,880 365,976
Operating income (loss) 50,716 (67,563) (5,932) (22,779)
Property, plant
and equipment additions 646,514 14,187 660,701
Net income (loss) 185,602 (49,120) (5,932) 130,550
Capital contributions 25,484 26,817 52,301
Net property, plant
and equipment 10,270,010 8,604,052 2,375 18,876,437
Net working capital 357,400 633,204 (17,241) 973,363
Total assets 11,253,762 9,273,493 2,375 20,529,630
Bonds payable 4,165,000 - 4,165,000
Total equity 6,773,219 9,234,010 (14,866) 15,992,363
Note 11 DEFICIT FUND BALANCES/RETAINED EARNINGS
The City has deficit fund balances/retained earnings at December 31, 1997 as follows:
Fund
Balance/Retained
Earnings Deficit
Capital Project Funds:
Capital Improvement Projects $22,358
MSA Construction 24,618
1994 Construction 66,298
1997 Construction 321,817
1998 Construction 103,010
Civic Center Project 143,878
Tax Increment Financing 1 -6 34,203
Tax Increment Financing 1 -7 436,760
Tax Increment Financing 1 -8 3,799
Tax Increment Financing 3 -1 357,006
Enterprise Fund:
Gas Utility
46
14,866
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
Note 12 CONTINGENCIES
Litigation - The City attorneys, except as described in the next paragraph, have indicated that existing and
pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of
an immaterial amount; or, in the judgment of the City attorneys, remotely recoverable by plaintiffs.
A property owner has appealed levied special assessments m the amount of approximately $585,000 claiming
there is no benefit to his property. The City attorneys have indicated that they would not expect the court to
reduce the special assessment to less than approximately $250,000.
Federal and State Grants - The City receives fmancial assistance from federal and state governmental agencies
in the form of grants. The disbursement of funds received under these programs generally requires compliance
with the terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies.
Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in
the opinion of management, any such disallowed claims will not have a material effect on any of the fmancial
statements of the individual fund types included herein or on the overall fmancial position of the City at
December 31, 1997.
Tax Increment Districts - The City's tax increment districts are subject to review by the State of Minnesota
Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability
of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance
which would have a material affect on the fmancial statements.
Note 13 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
General Obligation bond issues sold by the City are fmanced by ad valorem tax levies and special assessment
bond issues sold by the City are partially fmanced by ad valorem tax levies in addition to special assessments
levied against the benefiting properties. When a bond issue to be fmanced partially or completely by ad
valorem tax levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the
County Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies
are subject to cancellation when and if the City has provided alternative sources of financing. The City Council
is required to levy any additional taxes found necessary for full payment of principal and interest.
These future scheduled tax levies are not shown as assets in the accompanying fmancial statements at
December 31, 1997 and 1996.
Future scheduled tax levies for all bonds outstanding at December 31, 1997 totaled $4,544,223.
47
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
Note 14 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY
At December 31, 1997 and 1996 the City had designated and reserved portions of its various fund equities
through legal restriction and City Council authorization. Major fund equity appropriations at December 31,
1997 and 1996 are shown on the various balance sheets as segregations of the fund equity. A summary of such
designations is as follows:
December 31,
1997 1996
General Fund:
Reserve for prepaid items $99,820 $110,077
Designated for general contingencies 729,915 684,647
Designated for cash flow reserve 1,718,428 1,596,195
Designated for employee benefits 202,445 332,106
Designated for finance computer equipment 73,750
Designated for parks playground equipment 153,652
Designated for road reconstruction 30,730
Designated for personnel contingency 49,172
Special Revenue Funds:
Reserve for prepaid items 323 361
Designated for recreation program 29,854 22,002
Designated for CDBG programs 7,946 115
Debt Service Funds:
Reserved for debt retirement 1,009,512 341,544
Capital Project Funds:
Reserved for prepaid items 2,318
Reserved for land held for resale 989,506
Designated for capital improvements 10,644,145 9,905,607
Designated for equipment acquisition - 37,276
Designated for park improvements 309,982 252,489
Totals $16,051,498 $13,282,419
Note 15 SHARE IN GAS FRANCHISE PROFITS
The City receives a share of the gross billing for natural gas sales by a neighboring City which provides service
within the City of Lino Lakes, The amount reported as revenue for 1997 totaled $42,495.
48
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
Note 16 INTERFUND RECEIVABLE AND PAYABLES
Individual fund receivable and payable balances at December 31, 1997 are as follows:
Fund
Special Revenue Funds:
Community Development Block Grant
Receivable Payable
$ $6,282
Capital Project Funds:
Area and Unit Charge 2,015,037
1994 Construction 63,605
1997 Construction 268,561
1998 Construction 31,699
Town Center Project - 539,168
Civic Center Project 143,878
Tax Increment Financing District 1-4 -
Tax Increment Financing District 1 -5
Tax Increment Financing District 1 -6 - 33,869
Tax Increment Financing District 1 -7 - 434,863
Tax Increment Financing District 1 -8 2,292
Tax Increment Financing District 3 -1 355,862
Enterprise Fund:
Gas utility 17,241
Agency Fund:
Investments fund 117,717
$2,015,037 $2,015,037
Note 17 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors
and omissions; injuries to employees; and natural disasters.
Workers compensation coverage is provided through a pooled self- insurance program through the League of
Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject
to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers
Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is
not subject to a deductible. The City's workers compensation coverage is retrospectively rated. With this type
of coverage, final premiums are determined after loss experience is known. The amount of premium
adjustment, if any, is considered immaterial and not recorded until received or paid.
49
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
Property and casualty insurance is provided through a pooled self - insurance program through the LMCIT. The
City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed
necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various
amounts. The City retains risk for the deductible portion of the insurance policies and for any exclusions from
the insurance policies. These amounts are considered immaterial to the fmancial statements.
There were no significant reductions in insurance from the previous year or settlements in excess of insurance
coverage for any of the past three fiscal years.
Note 18 COMMITMENTS
COMMITTED CONTRACTS
At December 31, 1997, the City had the following commitments for uncompleted construction contracts:
Project Amount
4th Avenue trunk utility $7,709
Laurene Avenue Lift Station 36,168
Village Phase I 9,442
Centennial School 5,334
Water storage tank #2 27,058
LEASE COMMITTMENT
The City of Lino Lakes entered into a lease agreement dated December 8, 1997 whereby the City will construct
a facility on property it already owns. Upon completion, this facility will be leased to the tenant on or about
November 1, 1998 and continue until June 30, 2009. The tenant's payments shall be the lesser of either the
City's related debt service payments or the maximum rent equated to $110 per square feet total construction
costs. In no event shall the tenant be charged any amount above $110 per square foot net construction costs or
a total of $1,200,000 over the term of the lease. Title to the property will remain with the City.
Note 19 CONDUIT DEBT OBLIGATIONS
The City has issued Industrial Development Revenue Bonds to provide fmancial assistance to private- sector
entities for the acquisition and construction of industrial and commercial facilities which are deemed to be in
the public interest. The bonds are secured by the property financed and are payable solely from payments on
the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to
the private sector entity served by the bond issue. The City is not obligated in any manner for the repayment of
the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As
of December 31, 1997, one series of Industrial Revenue Bonds was outstanding with an aggregate remaining
principal balance of $6,000,000.
50
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
Note 20 JOINT VENTURE
The Centennial Fire District (the District) was established under a joint powers agreement between the City of
Lino Lakes and two other cities. The general purpose of the District is to provide fire protection services
~' including, but not limited to, fire prevention, firefighting and rescue service. Each member city is entitled to
appoint two commissioners to the District's Board.
Each calendar year each participating city shall pay to the District its share of the total operating and capital
—
budget in accordance with funding formula contained in Section VII of the joint powers agreement. The
funding formula takes into account each city's average number of calls, population, and total market value.
Vow
During 1997, the City of Lino Lakes' contributions to the District were as follows:
Operating $275,368
Capital 64,400
$339,768
Separate fmancial statements of the District can be obtained by contacting the District.
The unaudited condensed financial statements of the District as of December 31, 1996 (1997 information is not
yet available) are as follows:
Total assets $1,094,691
Total liabilities 16,197
Total equity 1,078,494
Total operating revenue 509,549
Total operating expenses 337,383
51
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
Note 21 PRIOR PERIOD ADJUSTMENTS
DEPRECIATION CORRECTION
During 1997, certain Enterprise Fund fixed asset records were corrected in conjunction with the City's
conversion to a new fixed asset accounting system. The net result of this correction was to increase
accumulated depreciation by a total of $19,533. Retained earnings at January 1, 1996 have been restated for
this correction.
CONTRACTUAL OBLIGATIONS
A review of contractual agreements with bordering cities revealed previously unrecorded liabilities/assets
pertaining to prior years as follows:
Connection and sewer use charges. The City of Lino Lakes was determined to be liable to a bordering City
for certain connection charges collected by the City of Lino Lakes. It was also determined that the City of
Lino Lakes had overpaid sewer use charges to the same city. In May of 1998, the two cities executed a
settlement agreement requiring the City of Lino Lakes to reimburse the bordering city the net amount of
$390,683 calculated as follows:
Connection
Charges - Sewer
Applicable Including Use Net
Year Penalty Charge Liability
1987 - 1995 $397,152 ($51,594) $345,558
1996 52,910 (22,957) 29,953
1997 37,573 (26,187) 11,386
1998 10,739 (6,953) 3,786
Totals
$498,374 ($107,691) $390,683
The 1996 fmancial statements have been restated to account for the net liability through December 31,
1996 of $375,511. The 1997 financial statements include the 1997 portion listed above, as well as the
cumulative liability of $386,897.
In accordance with Minnesota Statute 6.67, the failure to record the liabili ty in the City's prior year
fmancial statements and the failure to make timely payment in accordance with the terms of the agreement,
were reported to the Office of the State Auditor and the Anoka County Attorney.
Assessment Collection. The City of Lino Lakes was determined to be liable to a bordering city for certain
connection charges related to prior years totaling $6,419. Fund balance at January 1, 1996 has been
restated for this change.
52
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
SUMMARY
A summary of all prior period adjustments is as follows:
1996
Amounts Prior Period Adjustments 1996
Previously Connection Sewer Use Assessment Depreciation Amounts
Reported Charges Charges Charges Correction Restated
Capital Project Fund:
Area and Unit Charge Fund:
Fund balance - January 1 $5,945,209 ($397,152) $ - ($6,419) $ - $5,541,638
Net increase in fund balance 1,951,198 (52,910) - 1,898,288
Fund balance - December 31 6,037,474 (450,062) (6,419) 5,580,993
Total liabilities - December 31 2,301,914 397,152 6,419 2,705,485
Enterprise Funds:
Water Fund:
Retained earnings - January 1 474,508 (19,157) 455,351
Retained earnings - December 31 533,541 (19,157) 514,384
Total assets - December 31 11,567,716 (19,157) 11,548,559
Sewer Fund:
Retained earnings - January 1 311,806 51,594 (376) 363,024
Net income (loss) (47,622) 22,957 - (24,665)
Retained earnings - December 31 448,205 74,551 (376) 522,380
Total assets - December 31 9,211,204 74,551 (376) 9,285,379
Immo
53
COMBINING, INDIVIDUAL FUND
AND
ACCOUNT GROUP
FINANCIAL STATEMENTS
55
GENERAL FUND
Wow
The General fund accounts for all financial resources except those required to be accounted for
in another fund.
Immo
lomr
57
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
BALANCE SHEET
December 31, 1997
With Comparative Amounts At December 31, 1996
Statement 6
1997 1996
Assets
Cash and investments $3,045,734 $2,671,992
Accounts receivable 66,353 46,272
Due from other governmental units 95,782 85,465
Taxes receivable:
Delinquent 29,500 19,803
Due from County 33,994 17,837
Prepaid items 99,820 110,077
Total assets $3,371,183 $2,951,446
Liabilities and Fund Balance
Liabilities:
Accounts payable $197,612 $135,745
Salaries payable 67,716 56,520
Due to other governmental units 12,564 8,069
Deferred revenue 35,379 28,087
Total liabilities 313,271 228,421
Fund balance:
Reserved for prepaid items 99,820 110,077
Unreserved:
Designated for general contingencies 729,915 684,647
Designated for cash flow reserve 1,718,428 1,596,195
Designated for employee benefits 202,445 332,106
Designated for finance computer equipment 73,750 -
Designated for parks playground equipment 153,652
Designated for road reconstruction 30,730
Designated for personnel contingency 49,172
Total fund balance 3,057,912 2,723,025
Total liabilities and fund balance $3,371,183 $2,951,446
59
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1997
With Comparative Actual Amounts For The Year Ended December 31, 1996
Statement 7
Page 1 of 6
1997
Over (Under)
Budget Actual Budget
1996
Actual
Revenue:
General property taxes:
Current and delinquent $2,264,270 $2,260,693 ($3,577) $1,972,880
Fiscal disparities 381,840 381,843 3 341,830
Excess tax increments 12,000 15,949 3,949 12,338
Total general property taxes 2,658,110 2,658,485 375 2,327,048
Licenses and permits:
Non - business 528,000 544,107 16,107 765,600
Business 20,270 22,454 2,184 22,880
Total licenses and permits 548,270 566,561 18,291 788,480
Intergovernmental:
Federal:
Other 96,700 94,813 (1,887) 58,047
State:
Local government aid 150,170 150,167 (3) 155,212
Local performance aid 14,770 14,767 (3) -
Homestead credit 381,340 381,338 (2) 367,492
Mobile home homestead credit - 3,438 3,438 3,438
Police state aid 68,000 66,058 (1,942) 89,984
Police - other 20,182 20,182 -
MSA maintenance 100,000 108,886 8,886 102,820
Other 7,810 7,810 3,300
County:
Solid waste 34,000 33,970 (30) 35,168
Other - 30 30 1,333
Total intergovernmental 844,980 881,459 36,479 816,794
Charges for services:
General government 7,500 9,102 1,602 2,439
Planning/engineering 80,000 76,394 (3,606) 78,597
Recreation 2,400 100 (2,300) 2,000
Fees retained from collection for
other governments - SAC /surcharge 2,500 2,788 288 4,959
Administrative charge - other funds 80,000 87,287 7,287 118,167
Administrative charge - TIF 38,000 38,000 - -
Aerial map charge - other funds 15,000 12,790 (2,210) 32,490
Public safety 63,550 64,629 1,079 69,610
Total charges for services 288,950 291,090 2,140 308,262
Fines and forfeits 95,000 99,390 4,390 86,158
Interest on investments 60,000 108,212 48,212 86,615
Refunds and reimbursements 42,000 54,688 12,688 57,549
Gas franchise fees 32,500 42,495 9,995 41,726
Cable TV 28,000 17,926 (10,074) 48,437
Miscellaneous:
Sale of property 10,000 14,125 4,125 33,500
Donations 5,000 4,579 (421) 4,769
Other 13,000 10,964 (2,036) 28,194
Total miscellaneous 28,000 29,668 1,668 66,463
60
Total revenue 4,625,810 4,749,974 124,164 4,627,532
taw
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1997
With Comparative Actual Amounts For The Year Ended December 31, 1996
Expenditures:
General government:
Mayor and council:
Statement 7
Page 2 of 6
1997
Over (Under)
Budget Actual Budget
1996
Actual
Current:
Personal services $25,830 $25,458 ($372) $25,290
Supplies 200 382 182 903
Other services and charges 38,100 34,776 (3,324) 30,421
Contractual services 6,000 6,160 160 -
Total mayor and council 70,130 66,776 (3,354) 56,614
Elections:
Current:
Personal services 5,460 3,672 (1,788) 9,728
Imr Supplies 2,800 2,657 (143) 152
Other services and charges 1,750 538 (1,212) 556
Capital outlay 1,000 871 (129) 562
Total elections 11,010 7,738 (3,272) 10,998
Administration:
Current:
Personal services 257,900 252,250 (5,650) 235,901
_
Supplies 2,250 1,133 (1,117) 938
Other services and charges 50,250 40,674 (9,576) 31,260
Contractual services - 149 149 5,419
Capital outlay 4,500 1,373 (3,127) 1,738
Total administration 314,900 295,579 (19,321) 275,256
Finance
Current:
Personal services 126,180 130,485 4,305 129,518
Supplies 1,900 2,287 387 1,243
-- Other services and charges 39,650 28,770 (10,880) 30,421
Contractual services 51,000 50,433 (567) 47,599
Capital outlay - 309 309 -
Total fmance 218,730 212,284 (6,446) 208,781
Cable TV:
Current:
Personal services 1,670 2,004 334 1,720
Supplies 220 44 (176) 107
Capital outlay 14,500 21,627 7,127
Total cable TV 16,390 23,675 7,285 1,827
_
Consultants:
Current:
Legal 130,000 123,031 (6,969) 117,940
Ymor
61
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1997
With Comparative Actual Amounts For The Year Ended December 31, 1996
Statement 7
Page 3 of 6
1997
Over (Under) 1996
General government: (continued) Budget Actual Budget Actual
Economic development:
Current:
Personal services $163,460 $162,697 ($763) $113,227
Supplies 1,000 2,224 1,224 1,297
Other services and charges 50,150 40,482 (9,668) 21,153
Contractual services 22,000 38,322 16,322 248
Capital outlay 600 512 (88) 19,476
Total economic development 237,210 244,237 7,027 155,401
Planning and zoning board:
Current:
Other services and charges 7,000 4,354 (2,646) 4,143
Contractual services 2,500 2,966 466 2,205
Total planning and zoning board 9,500 7,320 (2,180) 6,348
Engineering/planning
Current:
Personal services 138,950 140,247 1,297 183,558
Supplies 1,100 1,287 187 2,402
Other services and charges 19,790 16,094 (3,696) 66,463
Contractual services 39,000 43,074 4,074 22,004
Capital outlay - 1,209 1,209 4,509
Total engineering/planning 198,840 201,911 3,071 278,936
Charter commission:
Current:
Supplies 350 14 (336) 19
Other services and charges 4,650 2,030 (2,620) 344
Total charter commission 5,000 2,044 (2,956) 363
General government buildings:
Current:
Personal services 7,940 2,866 (5,074) 3,303
Supplies 25,000 20,995 (4,005) 20,673
Other services and charges 117,200 109,388 (7,812) 98,197
Contractual services 36,820 20,123 (16,697) 25,515
Capital outlay 29,860 28,635 (1,225) 29,599
Total general government buildings 216,820 182,007 (34,813) 177,287
Total general government 1,428,530 1,366,602 (61,928) 1,289,751
62
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1997
With Comparative Actual Amounts For The Year Ended December 31, 1996
Statement 7
Page 4 of 6
1997
Over (Under)
Budget Actual Budget
Public safety:
Police:
Current:
1996
Actual
Personal services $1,106,090 $1,100,602 ($5,488) $911,573
Supplies 25,220 22,387 (2,833) 25,311
Other services and charges 85,540 84,557 (983) 80,239
Contractual services 26,690 22,064 (4,626) 20,471
Capital outlay 83,410 87,811 4,401 4,540
Total police 1,326,950 1,317,421 (9,529) 1,042,134
Vow Fire protection:
Current:
Contractual services 275,370 275,368 (2) 268,000
Building inspection:
Current:
Personal services 117,750 116,070 (1,680) 103,123
... Supplies 1,600 1,621 21 1,128
Other services and charges 3,800 3,817 17 2,610
Contractual services 30,750 34,604 3,854 26,023
Capital outlay 3,000 2,325 (675) 3,967
Total building inspection 156,900 158,437 1,537 136,851
Total public safety 1,759,220 1,751,226 (7,994) 1,446,985
Public works:
Streets:
Current:
Personal services 246,190 238,122 (8,068) 228,434
Supplies 6,630 4,088 (2,542) 4,616
Contractual services:
Streets 210,590 182,533 (28,057) 155,884
Signs 12,070 12,816 746 7,041
- Street lighting 37,300 33,983 (3,317) 27,406
Other services and charges 25,120 18,234 (6,886) 22,706
Capital outlay 23,630 24,272 642 18,196
_• Total streets 561,530 514,048 (47,482) 464,283
63
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1997
With Comparative Actual Amounts For The Year Ended December 31, 1996
Statement 7
Page 5 of 6
1997
Over (Under) 1996
Public works: (continued) Budget Actual Budget Actual
Fleet:
Current:
Personal services $60,820 $60,186 ($634) $51,436
Supplies 102,730 114,999 12,269 117,770
Other services and charges 7,130 8,701 1,571 7,893
Capital outlay - - - 403
Total fleet 170,680 183,886 13,206 177,502
Solid waste abatement:
Current:
Personal services 31,010 30,214 (796) 30,380
Supplies 1,000 1,033 33 117
Other services and charges 11,210 11,896 686 5,647
Contractual services 11,550 10,214 (1,336) 11,053
Capital outlay 5,000 4,725 (275) 5,473
Total solid waste abatement 59,770 58,082 (1,688) 52,670
Total public works
791,980 756,016 (35,964) 694,455
Parks, recreation & forestry:
Parks:
Current:
Personal services 238,770 234,541 (4,229) 218,029
Supplies 28,570 35,507 6,937 24,786
Other services and charges 45,970 50,046 4,076 43,152
Contractual services 8,650 809 (7,841) 3,186
Capital outlay 9,690 9,546 (144) 69,840
Total parks 331,650 330,449 (1,201) 358,993
Recreation:
Current:
Personal services 89,540 81,972 (7,568) 77,513
Supplies 4,100 5,554 1,454 3,622
Other services and charges 17,850 15,172 (2,678) 19,058
Contractual services 4,800 5,104 304 5,962
Capital outlay - 1,012 1,012 -
Total recreation 116,290 108,814 (7,476) 106,155
Forestry:
Current:
Personal services 57,750 59,757 2,007 43,758
Supplies 2,880 1,495 (1,385) 1,202
Other services and charges 5,060 5,562 502 1,180
Contractual services 3,050 2,647 (403) 1,106
Capital outlay 26,500 17,519 (8,981) 23,153
Total forestry 95,240 86,980 (8,260) 70,399
Total parks, recreation & forestry 543,180 526,243 (16,937) 535,547
64 Total expenditures 4,522,910 4,400,087 (122,823) 3,966,738
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1997
With Comparative Actual Amounts For The Year Ended December 31, 1996
Statement 7
Page 6 of 6
1997
Over (Under) 1996
Budget Actual Budget Actual
Revenue over (under) expenditures $102,900 $349,887 $246,987 $660,794
Other financing sources (uses):
Operating transfer to Capital Project Funds (15,000) (15,000) (24,000)
Total other financing sources (uses) (15,000) (15,000) (24,000)
Net increase in fund balance $87,900 334,887 $246,987 636,794
Fund balance - January 1 2,723,025 2,086,231
Fund balance - December 31 $3,057,912 $2,723,025
low
65
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are
legally restricted to expenditures for particular purposes. The City maintained the following
Special Revenue Funds during the year.
Economic Development Authority - established to account for the receipt and uses of
funds for economic purposes.
Community Development Block Grant - to account for the financial activity related to
projects funded by CDBG programs.
Program Recreation - established to account for various self - supporting recreational
programs.
67
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
December 31, 1997
With Comparative Totals For December 31, 1996
Statement 8
Assets
Cash and investments
Accounts receivable
Due from other governmental units
Prepaid items
Total assets
Liabilities and Fund Balance
Liabilities:
Interfund payable
Accounts payable
Salaries payable
Due to other governmental units
Total liabilities
Economic Community
Development Development Program Totals
Authority Block Grant Recreation 1997 1996
$
$ - $32,712 $32,712 $23,718
- - 949
15,812 15,812 3,938
29 294 323 361
$0 $15,841 $33,006 $48,847 $28,966
$ $6,282 $ - $6,282 $2,065
1,233 2,590 3,823 3,658
351 268 619 749
16
0 7,866 2,858 10,724 6,488
Fund balance:
Reserved for prepaid items 29 294 323 361
Unreserved:
Designated for recreation programs 29,854 29,854 22,002
Designated for CDBG programs 7,946 - 7,946 115
Total fund balance 0 7,975 30,148 38,123 22,478
Total liabilities and fund balance $0 $15,841 $33,006 $48,847 $28,966
68
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
For The Year Ended December 31, 1997
With Comparative Totals For The Year Ended December 31, 1996
Statement 9
Economic Community
Development Development Program Totals
Authority Block Grant Recreation 1997 1996
Revenue:
Intergovernmental:
Federal:
CDBG $ $44,469 $ $44,469 $41,445
Charges for services:
Recreation fees - 93,081 93,081 74,454
Administrative charge - other funds 1,107 - 1,107 748
Interest on investments - 1,538 1,538 955
Total revenue 1,107 44,469 94,619 140,195 117,602
Expenditures:
General government:
Current:
Personal services 1,107 16,219 17,326 16,245
Other services and charges 1,131 1,131 1,813
Contractual services 19,688 19,688 22,768
Parks, recreation and forestry:
Current:
Personal services 42,960 42,960 38,394
Supplies - 38,366 38,366 26,424
Other services and charges 1,129 1,129 402
Contractual services 1,209 1,209 557
Capital outlay 14,622 3,119 17,741 -
Total expenditures 1,107 51,660 86,783 139,550 106,603
Revenue over (under) expenditures (7,191) 7,836 645 10,999
Other financing sources (uses):
Operating transfer from General Fund - 15,000 15,000
"" Net increase in fund balance 0 7,809 7,836 15,645 10,999
Fund balance (deficit) - January 1 166 22,312 22,478 11,479
Fund balance - December 31 $0 $7,975 $30,148 $38,123 $22,478
NC
q
69
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUND - PROGRAM RECREATION
STATEMENT OF REVENUE, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1997
With Comparative Actual Amounts For The Year Ended December 31, 1996
Statement 10
1997
Over
(Under) 1996
Budget Actual Budget Actual
Revenue:
Charges for services:
Recreation fees $64,471 $93,081 $28,610 $74,454
Interest on investments - 1,538 1,538 955
Total revenue 64,471 94,619 30,148 75,409
Expenditures:
Parks, recreation and forestry:
Current:
Personal services 30,353 42,960 12,607 38,394
Supplies 13,150 38,366 25,216 26,424
Other services and charges 6,946 1,129 (5,817) 402
Contractual services - 1,209 1,209 557
Capital outlay - 3,119 3,119
Total expenditures 50,449 86,783 36,334 65,777
Net increase (decrease) in fund balance $14,022 7,836 ($6,186) 9,632
Fund balance - January 1 22,312 12,680
Fund balance - December 31 $30,148 $22,312
70
DEBT SERVICE FUNDS
The Debt Service Funds account for the accumulation of resources for, and the payment of,
interest, principal and related costs on general long -term debt.
The City's Debt Service Funds account for two types of bonded indebtedness:
• General Debt Bonds - are repaid primarily from property taxes.
• Improvement Bonds - are repaid primarily from special assessments.
...
'I.
Um.
INNEN
71
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
December 31, 1997
With Comparative Totals For December 31, 1996
Statement 11
1996 Public Project
Improvement Improvement Certificates Revenue
Bonds of Bonds of of Bonds Totals
1992A 1996A Indebtedness of 1990A 1997 1996
Assets
Cash and investments $11,265 $787,224 $4,417 $107,417 $910,323 $246,555
Cash and investments
with escrow agent 97,047 97,047 92,813
Taxes receivable:
Delinquent 1,079 1,149 2,228 2,084
Due from County 1,116 1,289 2,405 1,976
Special assessments receivable:
Delinquent 691 691 8,105
'"- Deferred 77,110 1,814,248 1,891,358 1,784,465
Due from County - - 463
Total assets $89,066 $2,601,472 $6,612 $206,902 $2,904,052 $2,136,461
Liabilities and Fund Balance
Liabilities:
Accounts payable
... Deferred revenue
Total liabilities
Iiimm
$200 $63 $ - $ - $263 $263
77,801 1,814,248 1,079 1,149 1,894,277 1,794,654
78,001 1,814,311 1,079 1,149 1,894,540 1,794,917
Fund balance: pn $ ,��� �J �3' 1wo1 ��
Reserved for debt retirement 11,065 787,161' 5,533 205,753 1,009,512 341,544
Total fund balance 11,065 787,161 5,533 205,753 1,009,512 341,544
Total liabilities and fund balance $89,066 $2,601,472 $6,612 $206,902 $2,904,052 $2,136,461
73
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 1997
With Comparative Totals For The Year Ended December 31, 1996
307 3/V
Improvement Improvement
Bonds of Bonds of
1992A 1996A
Revenue:
General property taxes:
Current and delinquent $ $
Fiscal disparities
Intergovernmental:
State:
HACA and equalization aid
Special assessments:
Current and delinquent 21,156
Prepayments 1,263
Penalties and interest 2,426
Interest on investments -
Total revenue 24,845
Expenditures:
Debt service:
Principal 220,000
Interest 182,005
Fiscal charges 400
Total expenditures 402,405
Revenue over (under) expenditures (377,560)
Other financing sources (uses):
Operating transfer from Capital Project Funds 257,000
Bond proceeds -
Total other financing sources (uses) 257,000
Net increase (decrease) in fund balance (120,560)
Fund balance - January 1 131,625
Residual equity transfer in
Residual equity transfer out
Fund balance - December 31
74
200,679
749,271
958,233
184,083
125
184,208
774,025
0
774,025
13,136
$11,065 $787,161
w.
MY\
01)
Statement 12
1994
Certificates
►- of
Indebtedness
$615
141
756
0
756
0
756
9,780
(10,536)
$0
1995
Certificates
of
Indebtedness
$71,967
12,323
12,337
101
96,728
88,000
5,280
93,280
3,448
0
3,448
5,259
(8,707)
$0
3!S
1996
Certificates
of
Indebtedness
$78,158
13,356
13,339
106,386
75,000
25,853
100,853
5,533
0
5,533
$5,533
Public
Project
Revenue Bonds
of 1990A
$88,029
14,897
14,877
Totals
1997
$238,769
40,576
40,553
1996
$258,819
45,065
48,466
221,835 98,784
750,534 242,439
2,426 1,028
_G;8S8 V`� 16,916 14,138
124,661 1,311,609 708,739
25,000
73,294
2,358
100,652
24,009
0
24,009
181,744
$205,753
408,000
470,515
2,883
881,398
430,211
257,000
257,000
687,211
341,544
(19,243)
2,483,000
393,913
3,148
2,880,061
(2,171,322)
13,197
13,197
(2,158,125)
653,887
1,858,933
(13,151)
$341,544
75
Now
lemma
CAPITAL PROJECT FUNDS
Capital Project Funds account for the acquisition or construction of major capital facilities other
than those financed by Proprietary Funds and Trust Funds. The City maintained the following
Capital Project Funds during the year:
Capital Improvement Proiects - to account for the proceeds from Equipment Certificates.
Closed Bond Fund - to account for excess funds from matured bond issues.
Dedicated Parks - to account for the receipt and use of monies collected from dedicated
parks fees.
Area and Unit Charge - to account for the collection of water and sewer unit charges to
be used for debt payments and construction of infrastructure.
MSA Construction - to account for City projects that are MSA designated for aid.
Street Reconstruction - to account for the financing of future reconstruction of City
streets.
Sealcoating - to account for money received from assessments and developer deposits
for future street sealcoating projects.
Surface Water Management - to account for the financing of surface water management
and storm water improvements.
SAC Revolving - to account for refunds from the Metropolitan Council Environmental
Service for properties that paid Sewer Area Charges (SAC) that will be collected in the
future.
Construction Funds - to account for the construction of public improvements.
Apollo Business Park - to account for costs of developing the City's industrial park.
Town Center Project - to account for costs associated with the construction of the City
Town Center project including civic buildings and infrastructure.
Tax Increment - to account for development projects financed with tax increments.
77
`' CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
December 31, 1997
With Comparative Totals For December 31, 1996
i
...
Viers
Statement 13
Page 1 of 3
Assets
Cash and investments
Accounts receivable
• Due from other governmental units
Interfund receivable
Taxes receivable:
Area
Capital q° / Closed dC and
Improvement Bond Dedicated Unit
Projects Fund Parks Charge
o6
$2,799 $1,104,103 $309,682 $4,902,095
2,000 - 300 64,187
36,903 79,966
- 2,015,037
Delinquent 870
Due from County 1,137
Delinquent tax increment -
Special assessments receivable:
- Delinquent
Deferred
Due from County
▪ Prepaid items
Land held for resale
2,141 1,696
81,572 2,835,017
206 2,687
.. Total assets $41,702 $1,190,029 $309,982 $9,900,685
Liabilities and Fund Balance
Liabilities:
Interfund payable $ - $ - $ $ -
▪ Accounts payable 53,778 527 4,156
Contracts payable 10,282 50,175
Due to other governmental units - 6,820 494,054
Deferred revenue 84,583 2,836,587
Total liabilities 64,060 91,930 0 3,384,972
Fund balance (deficit):
▪ Reserved for prepaid items
Reserved for land held for resale
Unreserved:
Designated:
Capital improvements 6,515,713
Equipment acquisition
Park improvements 309,982
Undesignated (22,358) 1,098,099 -
Total fund balance (deficit) (22,358) 1,098,099 309,982 6,515,713
—
Total liabilities and fund balance $41,702 $1,190,029 $309,982 $9,900,685
79
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
December 31, 1997
With Comparative Totals For December 31, 1996
Assets
Cash and investments
Accounts receivable
Due from other governmental units
Interfund receivable
Taxes receivable:
Delinquent
Due from County
Delinquent tax increment
Special assessments receivable:
Delinquent
Deferred
Due from County
Prepaid items
Land held for resale
ES�
t� l'3 k Surfac
MSA I Street Water .
Construction Reconstruction Sealcoating Management
$7,162 $68,600 $285,035 $1,079,537
82 118 1,091
278,101 115,191 288,931
43 240 617
Total assets $7,162 $346,826 $400,584 $1,370,176
Liabilities and Fund Balance
Liabilities:
Interfund payable $ - $ $ - $ -
Accounts payable 31,780 - 1,891 3,917
Contracts payable - 6,181 -
Due to other governmental units - -
Deferred revenue 278,183 115,309 290,022
Total liabilities 31,780 278,183 123,381 293,939
Fund balance (deficit):
Reserved for prepaid items
Reserved for land held for resale
Unreserved:
Designated:
Capital improvements 68,643 277,203 1,076,237
Equipment acquisition
Park improvements
Undesignated (24,618)
Total fund balance (deficit) (24,618) 68,643 277,203 1,076,237
Total liabilities and fund balance $7,162 $346,826 $400,584 $1,370,176
80
VEINN
tame
Statement 13
Page 2 of 3
44: ° k.K17 ;1 l� ',. Apollo
SAC Interim 1994 1995 1996 1997 1998 Business
Revolving Construction Construction Construction Construction Construction Construction Park
$551,956 $17,370 $ $11,211 $869,944 $ - $ $480,258
7,834
$551,956 $17,370 $0 $11,211 $869,944 $0 $0 $488,092
$ $ $63,605 $ - $ - $268,561 $31,699 $ -
2,693 219 1,650 53,197 71,311
- 2,254 229,716 - -
59 59
0
7,834
0 66,298 2,473 231,425 321,817 103,010 7,834
551,956 17,370 8,738 638,519 480,258
(66,298) (321,817) (103,010)
551,956 17,370 (66,298) 8,738 638,519 (321,817) (103,010) 480,258
$551,956 $17,370 $0 $11,211 $869,944 $0 $0 $488,092
81
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
December 31, 1997
With Comparative Totals For December 31, 1996
Assets
Cash and investments
Accounts receivable
Due from other governmental units
Interfund receivable
Taxes receivable:
Delinquent
Due from County
Delinquent tax increment
Special assessments receivable:
Delinquent
Deferred
Due from County
Prepaid items
Land held for resale
Apollo ; ' , Town `2' Civic VI Town A3-zi Drive Center Center Center
Construction Project Project Infrastructure
$38,646 $ $ $619,199
299,616
2,857
2,318
989,506
24,985
Total assets $338,262 $994,681 $0 $644,184
Liabilities and Fund Balance
Liabilities:
Interfund payable $ - $539,168 $143,878 $ -
Accounts payable 926 55,616
Contracts payable - 13,854
Due to other governmental units 5,104
Deferred revenue
Total liabilities 926 599,888 143,878 13,854
Fund balance (deficit):
Reserved for prepaid items 2,318
Reserved for land held for resale 989,506
Unreserved:
Designated:
Capital improvements 337,336 630,330
Equipment acquisition - -
Park improvements
Undesignated (597,031) (143,878)
Total fund balance (deficit) 337,336 394,793 (143,878) 630,330
Total liabilities and fund balance $338,262 $994,681 $0 $644,184
82
Statement 13
Page 3 of 3
Tax 14 t° Tax IP/
Increment Increment
Financing Financing
1-4 1 -5
Tax '7 12/
Increment
Financing
1 -6
$42,048 $25,502 $ -
152
2,572
$42,200 $28,074
38
12
$50
Tax ''l l j
Increment
Financing
1 -7
$
9
22
$31
$ - $33,869 $434,863
24,186 517
1,208 466 372 1,389
2,572 12 22
1,208 27,224 34,253 436,791
40,992 850
40,992 850
$42,200 $28,074
(34,203)
(34,203)
$50
(436,760)
(436,760)
$31
Tax 41( Tax 1-11
Increment
Financing
3 -1
Increment
Financing
1 -8
$0
Totals
1997
1996
$10,415,147 $10,334,112
91,472 68,844
416,485 953,080
2,015,037 1,040,283
870 603
4,193 7,888
120 2,726 1
5,128 12,935
3,606,646 3,000,572
3,793 2,463
2,318 -
989,506
$120 $17,553,321 $15,420,781
$2,292 $355,862 $1,873,797 $939,586
- 62 306,426 65,145
- 312,462 190,608
1,507 1,082 512,120 470,999
120 3,615,244 3,014,111
3,799 357,126 6,620,049 4,680,449
2,318
989,506
10,644,145 9,905,607
37,276
309,982 252,489
(3,799) (357,006) (1,012,679) 544,960
(3,799) (357,006) 10,933,272 10,740,332
$0 $120 $17,553,321 $15,420,781
83
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 1997
With Comparative Totals For The Year Ended December 31, 1996
Statement 14
Page 1 of 3
Capital ,4•rl ( Closed Area and
Improvement' Bond 3,Q 1 Dedicat d Unit MSA ,ftip Projects Fund/ Parks Charge Construction
Revenue:
General property taxes:
Current and delinquent $ - $1,715 $ - $ - $ -
Fiscal disparities 30
Tax increments
Intergovernmental:
Federal:
Other 44,720
State:
MSA construction (7, 177)
Other -
County:
Other
Special assessments:
Current and delinquent 17,583 288,737
Prepayments 102,898 1,045,323
Penalties and interest 1,816 2,181
Utility charges - - 213,642
Interest on investments 8,410 52,181 15,158 324,581 1,805
Refunds and reimbursements n - - -
Rental payments ----- ��4 ' O 55,250 - 625
Park dedication fees - 71,081
Sale of property 8,000 -
Total revenue 116,380 176,223 86,239 1,867,912 1,805
Expenditures:
Current:
General government:
Contractual services 10,651 9,608 4,880 8,447
Public works:
Contractual services 37,573
Capital outlay:
General government 53,022
Public safety 109,120
Public works 33,554 -
Parks, recreation and forestry - 51,444 -
Construction/acquisition 194,667 - 630,172 81,221
Total expenditures 401,014 9,608 56,324 676,192 81,221
Revenue over (under) expenditures (284,634) 166,615 29,915 1,191,720 (79,416)
Other financing sources (uses):
"' Operating transfer from General Fund
Operating transfer from Capital Project Funds -
Operating transfer to Debt Service Funds (257,000)
Operating transfer to Capital Project Funds -
Debt proceeds 225,000
Total other financing sources (uses) 225,000 0 0 (257,000) 0
Net increase (decrease) in fund balance (59,634) 166,615 29,915 934,720 (79,416)
Fund balance (deficit) - January 1 37,276 912,241 280,067 5,580,993 54,798
Residual equity transfer in 19,243
Residual equity transfer out - -
Fund balance (deficit) - December 31
($22,358) $1,098,099
$309,982
$6,515,713 ($24,618)
85
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 1997
With Comparative Totals For The Year Ended December 31, 1996
Street I "/
v1
Reconstruction Sealcoating
Surface
Water SAC Interim
Management Revolving Construction
Revenue:
General property taxes:
Current and delinquent $ - $ - $ - $ - $ -
Fiscal disparities
Tax increments
Intergovernmental:
Federal:
Other
State:
MSA construction
Other 16,000
County:
Other
Special assessments:
Current and delinquent 37,242 14,370 28,654
Prepayments 8,997 44,831 301,936
Penalties and interest 2 21 236
Utility charges - -
Interest on investments 1,967 14,837 44,588 27,401 852
Refunds and reimbursements 116,903 - - 295
Rental payments
Park dedication fees
Sale of property
Total revenue 48,208 206,962 375,414 27,401 1,147
Expenditures:
Current:
General government:
Contractual services 27,609
Public works:
Contractual services
Capital outlay:
General government
Public safety -
Public works 620 7,000
Parks, recreation and forestry - -
Construction/acquisition 201,864
Total expenditures 0 202,484 34,609 0 0
Revenue over (under) expenditures 48,208 4,478 340,805 27,401 1,147
Other financing sources (uses):
Operating transfer from General Fund
Operating transfer from Capital Project Funds
Operating transfer to Debt Service Funds
Operating transfer to Capital Project Funds
Debt proceeds -
Total other financing sources (uses) 0 0 0 0 0
Net increase (decrease) in fund balance 48,208 4,478 340,805 27,401 1,147
Fund balance (deficit) - January 1 20,435 272,725 735,432 524,555 16,223
Residual equity transfer in
Residual equity transfer out
Fund balance (deficit) - December 31 $68,643 $277,203 $1,076,237 $551,956 $17,370
86 -I9 _\` \\Q - S (t\ \ -x,333 -
Wwwo
...
Statement 14
Page 2 of 3
Apollo /1 Apollo
1994 It %) 1995 1996 1997 1998 Business L f Drive
onstruction Construction Construction Construction Construction Park Construction
0
$ - $ - $ - $ - $ - $ -
888
557 64,360 18,926
•
269,487
557 64,360 0 0 289,301
600
235,371
2,259
237,630
48,538 2,493 1,308,738 198,964 103,010 17,444
48,538 2,493 1,308,738 198,964 103,010 600 17,444
(48,538) (1,936) (1,244,378) (198,964) (103,010) 288,701 220,186
0 0 0 0 0 0 0
(48,538) (1,936) (1,244,378) (198,964) (103,010) 288,701 220,186
(17,760) 10,674 1,882,897 (122,853) 191,557 117,150
($66,298)
—0
$8,738 $638,519 ($321,817) ($103,010) $480,258 $337,336
0 ..2,C199 -Z� - 87
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 1997
With Comparative Totals For The Year Ended December 31, 1996
Town
Center
Project
Revenue:
General property taxes:
Current and delinquent
Fiscal disparities
Tax increments
Intergovernmental:
Federal:
Other
State:
MSA construction
Other
County:
Other
Special assessments:
Current and delinquent
Prepayments
Penalties and interest
Utility charges
Interest on investments
Refunds and reimbursements
Rental payments
Park dedication fees
Sale of property
Total revenue
Expenditures:
Current:
General government:
Contractual services
Public works:
Contractual services
Capital outlay:
General government
Public safety
Public works
Parks, recreation and forestry
Construction/acquisition
Total expenditures
Revenue over (under) expenditures
Other financing sources (uses):
Operating transfer from General Fund
Operating transfer from Capital Project Funds
Operating transfer to Debt Service Funds
Operating transfer to Capital Project Funds
Debt proceeds
Total other financing sources (uses)
Net increase (decrease) in fund balance
Fund balance (deficit) - January 1
Residual equity transfer in
Residual equity transfer out
Fund balance (deficit) - December 31
88
58,788
58,788
125,603
447,876
Civic
Center
Project
0
143,878
Town Tax Increment
Center477 Financing
Infrastructure 1 -1
\\ku
$ $
242,345
196,638
573,479 143,878 196,638
5,039
247,384
2,087
2,087
Tax Increment
Financing
1 -2
122,111
2,178
124,289
1,584
39,202
40,786
(514,691) (143,878) (196,638) 245,297 83,503
946,020
946,020
431,329
(36,536)
$394,793
_'D
0
(143,878)
($143,878)
-J
0
0 0
(196,638) 245,297 83,503
347,899 150,269
826,968
(593,196) (233,772)
$630,330 $0 $0
-0
Statement 14
Page 3 of 3
.. Tax Increment Tax Increment Tax Increment Tax Increment Tax Increment Tax Increment
Financing Financing Financing Financing Financing Financing Totals
1-4 1 -5 1 -6 1 -7 1 -8 3 -1 1997 1996
Vmws
$ - $ - $ - $ - $ - $ - $1,715 $630
30 15
47,703 26,874 10,525 45,635 3,336 498,529 378,307
44,720
228,194 230,513
16,000
658,323
387,474 283,657
1,503,985 / 1,489,417
4,256 44) 8,258
213,642 ,/ 239,142
660 426 - 86,185 J 436,337
600 12,100 10,500 141,023 276,367
55,250
71,081 42,560
336,275 -
48,963 27,300 10,525 57,735 0 13,836 4,088,359 4,043,526
3,511 24,679 17,150 314,585 3,799 366,851 1,065,522 216,163
37,573 52,910
53,022 120,182
109,120 104,624
489,050 80,147
90,646 24,741
2,983,749 3,408,812
3,511 24,679 17,150 314,585 3,799 366,851 4,828,682 4,007,579
45,452 2,621 (6,625) (256,850) (3,799) (353,015) (740,323) 35,947
.. 24,000
- 22,122
(257,000)
(22,122)
1,171,020 4,853,781
0 0 0 0 0 0 914,020 4,877,781
45,452 2,621 (6,625) (256,850) (3,799) (353,015) 173,697 4,913,728
(4,460) (1,771) (27,578) (179,910) (3,991) 10,740,332 7,672,386
- 846,211 13,151
(826,968) (1,858,933)
$40,992 $850 ($34,203) ($436,760) ($3,799) ($357,006) $10,933,272 $10,740,332
- I l l -� Z - d - -' -� - J -1ao 89
/0,$64,2°7 •
ENTERPRISE FUNDS
Enterprise Funds are used to account for operations that are financed and operated in a manner
similar to private business enterprises - where the intent of the government's council is that the
cost of providing goods or services to the general public on a continuing basis be financed or
recovered primarily through user charges; or where the government's council has decided that
periodic determination of net income is appropriate for accountability purposes. The City
maintained the following Enterprise Funds during the year:
Water Fund - to account for customer water and service charges that are used for
financing water operating expenses.
,_ Sewer Fund - to account for customer sewer and service charges that are used for
financing sewer operating expenses.
Gas Utility Fund - to account for costs associated with the Circle Pines Gas Utility.
91
CITY OF LINO LAKES, MINNESOTA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
December 31, 1997
With Comparative Totals For December 31, 1996
Statement 15
Assets
Gas Totals
Water Sewer Utility 1997 1996
Current assets:
Cash and cash equivalents $536,402 $364,095 $ $900,497 $1,996,044
Accounts receivable 115,712 173,103 288,815 236,534
Due from other governmental units - 100,738 100,738 74,551
Special assessments current portion 13,434 331 13,765 -
Prepaid items 1,422 31,174 32,596 3,722
Total current assets 666,970 669,441 0 1,336,411 2,310,851
Long term assets:
Special assessments - long term 316,782 316,782
Fixed assets:
Buildings 48,690 48,690 48,690
Equipment 97,098 65,145 162,243 113,440
Water and sewer system 7,702,000 9,771,617 17,473,617 17,473,617
Construction in progress 3,367,050 - 3,367,050 2,755,152
Total fixed assets 11,214,838 9,836,762 0 21,051,600 20,390,899
Less: Allowance for depreciation (944,828) (1,232,710) (2,177,538) (1,867,812)
Subtotal 10,270,010 8,604,052 0 18,874,062 18,523,087
Acquisition costs - gas utility - - 2,375 2,375 2,375
Net fixed assets 10,270,010 8,604,052 2,375 18,876,437 18,525,462
Total assets $11,253,762 $9,273,493 $2,375 $20,529,630 $20,836,313
Liabilities and Fund Equity
Current liabilities:
Interfund payable $ - $ - $17,241 $17,241 $11,309
Accounts payable 31,077 4,459 - 35,536 16,420
Salaries payable 1,875 2,183 4,058 3,293
Contracts payable 124,195 124,195 624,369
Accrued interest payable 95,488 95,488 68,574
Due to other governmental units 6,935 29,595 36,530 26,201
Bonds payable - current portion 50,000 - 50,000 50,000
Total current liabilities 309,570 36,237 17,241 363,048 800,166
Long -term liabilities:
Bonds payable - long term 4,165,000 4,165,000 4,215,000
Compensated absences payable 5,973 3,246 9,219 11,635
Total liabilities 4,480,543 39,483 17,241 4,537,267 5,026,801
Fund equity:
Contributed capital 5,935,664 8,564,111 14,499,775 14,781,682
Retained earnings (deficit) 837,555 669,899 (14,866) 1,492,588 1,027,830
Total fund equity 6,773,219 9,234,010 (14,866) 15,992,363 15,809,512
Total liabilities and fund equity $11,253,762 $9,273,493 $2,375 $20,529,630 $20,836,313
92
mir
CITY OF LINO LAKES, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENSES
AND CHANGES IN RETAINED EARNINGS
For The Year Ended December 31, 1997
With Comparative Totals For The Year Ended December 31, 1996
Statement 16
Gas Totals
Water Sewer Utility 1997 1996
Operating revenue:
Charges for services $430,938 $585,149 $ $1,016,087 $886,171
Hook -up charges 21,500 17,200 38,700 43,225
Water meter sales 24,632 - - 24,632 28,960
Other operating revenue 9,317 26,187 35,504 23,105
Total operating revenue 486,387 628,536 0 1,114,923 981,461
Operating expenses:
Personal services 75,257 79,130 154,387 145,181
Materials and supplies 90,795 7,626 98,421 42,286
Contractual services 28,423 45,621 5,932 79,976 74,332
Repair and maintenance 24,813 17,918 - 42,731 8,576
MCES sewer charges 297,202 297,202 260,421
Depreciation:
Purchased assets 26,527 5,241 31,768 29,550
Contributed assets 137,569 196,639 334,208 299,864
.. Utilities 50,364 45,468 95,832 83,672
Other 1,923 1,254 3,177 3,851
Total operating expenses 435,671 696,099 5,932 1,137,702 947,733
Net income (loss) from operations 50,716 (67,563) (5,932) (22,779) 33,728
Other income (expense):
Interest on investments 35,387 18,437 53,824 46,793
Special assessments 329,399 6 329,405
Bond interest (229,375) (229,375) (144,228)
Paying agent fees (525) (525) (26,653)
Total other income (expense) 134,886 18,443 0 153,329 (124,088)
Net income (loss) 185,602 (49,120) (5,932) 130,550 (90,360)
Credit arising from transfer of depreciation
to contributed capital 137,569 196,639 334,208 299,864
Retained earnings (deficit) - January 1 514,384 522,380 (8,934) 1,027,830 818,326
Retained earnings (deficit) - December 31 $837,555 $669,899 ($14,866) $1,492,588 $1,027,830
- s -- z; 3 I -0
93
CITY OF LINO LAKES, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For The Year Ended December 31, 1997
With Comparative Totals For The Year Ended December 31, 1996
Statement 17
Cash flows from operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash flows from operating activities:
Depreciation
Change in assets and liabilities:
Decrease (increase) in receivables
Decrease (increase) in prepaid items
Increase (decrease) in payables
Net cash flows from operating activities
Cash flows from capital and related fmancing activities:
Principal paid on revenue bonds
Interest and paying agent fees on revenue bonds
Operating transfer from Capital Project Funds
Proceeds from issuance of bonds
Acquisition of fixed assets
Net cash flows from capital
and related financing activities
Cash flows from investing activities:
Interest on investments
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
94
Gas Totals
Water Sewer Utility 1997 1996
$50,716 ($67,563) ($5,932) ($22,779) $33,728
164,096 201,880 365,976 329,414
(26,172) (53,438) (79,610) (5,354)
475 (29,349) (28,874) 25,115
(482,797) 10,417 5,932 (466,448) 650,346
(293,682) 61,947 . 0 (231,735) 1,033,249
(50,000) (50,000) (50,000)
(202,986) (202,986) (88,887)
3,283,495
(645,833) (18,817) (664,650) (2,779,811)
(898,819) (18,817) 0 (917,636) 364,797
35,387 18,437 53,824 43,458
(1,157,114) 61,567 0 (1,095,547) 1,441,504
1,693,516 302,528 1,996,044 554,540
$536,402 $364,095 $0 $900,497 $1,996,044
AGENCY FUNDS
Agency Funds are used to account for assets held by the City as an agent for individuals, private
organizations, other governments and/or other funds. The City maintained the following Agency
Funds during the year:
Contractors Deposits - to account for pass - through costs relating to prospective
developers.
Pending Assessment Deposits - to account for prepayment of special assessments by
developers prior to Council adoption.
Investment Fund - to account for the pooling of investments of the City.
Deferred Compensation - to account for employee contributions to the City authorized
deferred compensation plan. This fund is no longer required to be reported.
Y
VOW
95
CITY OF LINO LAKES, MINNESOTA
AGENCY FUNDS
COMBINING BALANCE SHEET
December 31, 1997
With Comparative Totals For December 31, 1996
Statement 18
Pending
Contractors Assessment Investment Totals
Deposits Deposits Fund 1997
Assets
1996
Cash and investments $220,941 $60,296 $ $281,237 $201,179
Assets with deferred
compensation plan administrator 467,350
Accrued interest receivable 117,717 117,717 87,323
Deposits receivable 85,388 - 85,388 160,939
Total assets
Liabilities
$306,329 $60,296 $117,717 $484,342 $916,791
Interfund payable $ - $ - $117,717 $117,717 $87,323
Accounts payable 16,681 - 16,681 16,373
Deposits payable 289,648 60,296 349,944 345,686
Due to other governmental units - - 59
Deferred compensation payable 467,350
Total liabilities $306,329 $60,296 $117,717 $484,342 $916,791
96
CITY OF LINO LAKES, MINNESOTA
AGENCY FUNDS
- COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For The Year Ended December 31, 1997
Statement 19
Balance Balance
January 1, December 31,
1997 Additions Deletions 1997
Contractors deposits:
Assets
Cash and investments $174,498 $1,403,178 $1,356,735 $220,941
Deposits receivable 160,939 1,010,341 1,085,892 85,388
Total assets $335,437 $2,413,519 $2,442,627 $306,329
Liabilities
Accounts payable $16,373 $878,829 $878,521 $16,681
Deposits payable 319,005 305,638 334,995 289,648
Due to other governmental units 59 - 59 -
Total Liabilities $335,437 $1,184,467 $1,213,575 $306,329
Pending Assessment Deposits:
Assets
Cash and investments $26,681 $322,974 $289,359 $60,296
Liabilities
Deposits payable $26,681 $322,974 $289,359 $60,296
Investment Fund:
Assets
Accrued interest receivable $87,323 $117,717 $87,323 $117,717
Liabilities
Interfundpayable $87,323 $117,717 $87,323 $117,717
Deferred Compensation:
Assets
Assets with deferred
compensation plan administrator $467,350 $ $467,350 $
Liabilities
Deferred compensation payable $467,350 $ $467,350
Totals -All Trust and Agency Funds:
Assets
Cash and investments $201,179 $1,726,152 $1,646,094 $281,237
Assets with deferred
compensation plan administrator 467,350 - 467,350 -
Accrued interest receivable 87,323 117,717 87,323 117,717
Deposits receivable 160,939 1,010,341 1,085,892 85,388
Total assets $916,791 $2,854,210 $3,286,659 $484,342
Liabilities
Interfundpayable $87,323 $117,717 $87,323 $117,717
Accounts payable 16,373 878,829 878,521 16,681
Deposits payable 345,686 628,612 624,354 349,944
Due to other governmental units 59 - 59 -
Deferred compensation payable 467,350 467,350
Total liabilities $916,791 $1,625,158 $2,057,607 $484,342
97
GENERAL FIXED ASSETS ACCOUNT GROUP
The City maintains a separate account group which contains the fixed assets used in the
governmental fund type operations. They are assets of the City as a whole and not of individual
funds.
99
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE
For The Year Ended December 31, 1997
Statement 20
Balance Balance
January 1, December 31,
1997 Additions Deletions 1997
Land and improvements $649,600 $447,876 $ $1,097,476
Buildings 1,539,500 206,568 1,746,068
Office equipment and furniture 190,653 123,976 1,516 313,113
Other 425,410 60,765 486,175
Vehicles 806,661 135,490 69,017 873,134
Machinery and shop equipment 514,329 11,948 13,634 512,643
Totals $4,126,153 $986,623 $84,167 $5,028,609
Investment in General Fixed Assets from:
General Fund
Capital Project Funds
Grants
Donations
Debt Service Funds
Assets acquired before January 1, 1992
Total investment in General Fixed Assets
100
$355,515
2,224,685
45,252
69,746
61,400
2,272,011
$5,028,609
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
As of December 31, 1997
Statement 21
Office Machinery
Land Equipment and
and and Shop Other
Improvements Buildings Furniture Vehicles Equipment Improvements Total
General government:
Administration/finance $ - $ - $11,440 $12,135 $ - $ - $23,575
Elections 21,531 - 21,531
Economic development 1,181 19,201 20,382
Engineering/planning - - 4,605 32,330 - 36,935
Government buildings 648,876 1,746,068 190,832 - 3,500 15,554 2,604,830
Senior center - - 2,500 - - 2,500
Total general government 648,876 1,746,068 232,089 63,666 3,500 15,554 2,709,753
Public safety:
Police 72,286 271,338 3,000 105,000 451,624
Building inspection - 6,459 - - 6,459
Total public safety 0 0 72,286 277,797 3,000 105,000 458,083
Public works:
Streets
Shop
Surface water management
Total public works
0
319 435,901 287,567 723,787
- - 35,528 35,528
16,662 16,662
0 319 435,901 339,757 0 775,977
•- Parks, recreation and forestry:
Parks, recreation and forestry 448,600 8,420 95,769 166,386 365,621 1,084,796
Total parks, recreation and forestry 448,600 0 8,420 95,769 166,386 365,621 1,084,796
Wow
INEW
Totals $1,097,476 $1,746,068 $313,114 $873,133 $512,643 $486,175 $5,028,609
101
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
For The Year Ended December 31, 1997
Statement 22
Balance Balance
1/1/97 Transfers Additions Deletions 12/31/97
General government:
Administration/finance $14,147 $ $9,428 $ $23,575
Elections 21,531 21,531
Economic development 20,382 20,382
Engineering/planning 16,235 20,700 36,935
Government buildings 1,902,331 705,151 2,652 2,604,830
Senior center 2,500 - 2,500
Total general government 1,977,126 0 735,279 2,652 2,709,753
Public safety:
Police 379,365 120,975 48,716 451,624
Building inspections 6,459 - - 6,459
Total public safety 385,824 0 120,975 48,716 458,083
Public works:
Streets 677,812 57,975 12,000 723,787
Shop 35,528 - 35,528
Surface water management 17,128 466 16,662
Total public works 730,468 0 57,975 12,466 775,977
Parks, recreation and forestry:
Parks, recreation and forestry 1,032,735 72,394 20,333 1,084,796
Total parks, recreation and forestry 1,032,735 0 72,394 20,333 1,084,796
Totals $4,126,153 $0 $986,623 $84,167 $5,028,609
102
GENERAL LONG -TERM DEBT ACCOUNT GROUP
The General Long -Term Debt Account Group is used to account for long -term debt of the City
other than debt recorded in the Enterprise Funds.
103
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF GENERAL LONG - TERM DEBT
December 31, 1997
Statement 23
Amount Available And To Be Provided For The
Retirement of Long -Term Debt:
Amount available in Debt Service Fund
Amount to be provided - future tax levies/assessments /tax increment collections
Total available and to be provided
General Long -Term Debt Payable:
December 31,
1997 1996
$1,009,512 $341,544
9,010,771 8,900,771
$10,020,283 $9,242,315
Bonds payable:
General Obligation Bonds:
1995 Equipment Certificates $ - $88,000
1996 Equipment Certificates 150,000 225,000
1997 Equipment Certificates 225,000 -
Public Project Revenue Bonds - 1990A 1,040,000 1,065,000
Total general obligation bonds 1,415,000 1,378,000
Special assessment bonds:
G. O. Improvement Bonds of 1992A 2,770,000 2,990,000
G. O. Improvement Bonds of 1996A 4,685,000 4,685,000
Total special assessment bonds 7,455,000 7,675,000
Total bonds payable 8,870,000 9,053,000
Contracts for deed payable 946,020
Compensated absences payable 204,263 189,315
Total general long -term debt $10,020,283 $9,242,315
104
SUPPLEMENTARY
FINANCIAL
INFORMATION
105
CITY OF LINO LAKES, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 1997
Interest
Rates
Dated
Final
Maturity
Date
General Obligation Bonds:
1994 Equipment Certificates 5.00 3/1/94 12/31/96
1995 Equipment Certificates 5.00 2/1/95 12/31/97
1996 Equipment Certificates 6.00 2/1/96 12/31/99
1997 Equipment Certificates 6.00 2/1/97 12/31/00
Public Project Revenue Bonds - 1990A 7.12 10/1/90 2/1/10
Total General Obligation Bonds
Special Assessment Bonds:
G. O. Improvement Bonds of 1992A
G. O. Improvement Bonds of 1996A
Total Special Assessment Bonds
Revenue Bonds:
G. O. Water Revenue Bonds of 1992B
G. O. Water Revenue Bonds of 1996B
Total Revenue Bonds
Total - all bonds
6.51 4/1/92 2/1/06
5.05 10/1/96 2/1/07
6.67 4/1/92 2/1/08
5.48 10/1/96 2/1/12
Contract for deed payable 8.00 4/30/97 1/31/02
Contract for deed payable 8.00 12/1/97 12/1/02
Total City indebtedness
106
Exhibit 1
Prior Years Principal Interest
- Original Payable 1997 Payable Due Due
Issue Payments 1/1/97 Issued Payments 12/31/97 In 1998 In 1998
$150,000 $150,000 $ - $ - $ - $ - $
176,000 88,000 88,000 88,000
225,000 - 225,000 75,000 150,000 75,000 9,000
- - 225,000 - 225,000 75,000 25,853
1,115,000 50,000 1,065,000 - 25,000 1,040,000 40,000 71,188
1,666,000 288,000 1,378,000 225,000 188,000 1,415,000 190,000 106,041
3,640,000 650,000 2,990,000 220,000 2,770,000 250,000 168,940
▪ 4,685,000 - 4,685,000 - 4,685,000 300,000 214,600
8,325,000 650,000 7,675,000 0 220,000 7,455,000 550,000 383,540
low
1,060,000 115,000 945,000 50,000 895,000 55,000 56,589
3,320,000 - 3,320,000 - 3,320,000 85,000 169,758
- 4,380,000 115,000 4,265,000 0 50,000 4,215,000 140,000 226,347
Ism
Immo
14,371,000 1,053,000 13,318,000 225,000 458,000 13,085,000 880,000 715,928
598,382 598,382 -
347,638 347,638 1,157 26,654
$14,371,000 $1,053,000 $13,318,000 $1,171,020 $458,000 $14,031,020 $881,157 $742,582
107
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 1997
Exhibit 2
Public
Project G. O.
Year of Equipment Equipment Revenue Improvement
Levy/ Certificates Certificates Bonds Bonds
Collection of 1996 of 1997 of 1990A of 1992A Total
1997/1998 Actual $88,200 $105,896 $125,882 $ - $319,978
1998/1999 Scheduled 83,475 88,200 122,417 357,328 651,420
1999/2000 Scheduled - 83,475 145,150 354,861 583,486
2000/2001 Scheduled - 139,834 353,352 493,186
2001/2002 Scheduled - 134,479 358,981 493,460
2002/2003 Scheduled 129,045 367,953 496,998
2003/2004 Scheduled 149,783 369,724 519,507
2004/2005 Scheduled 142,433 348,731 491,164
2005/2006 Scheduled 134,978 134,978
2006/2007 Scheduled 127,523 - 127,523
2007/2008 Scheduled 120,015 - 120,015
2008/2009 Scheduled - - 112,508 - 112,508
$171,675 $277,571 $1,584,047 $2,510,930 $4,544,223
108
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS
December 31, 1997
Exhibit 3
G. 0. G. 0. Public
G.O. G.O. Water Water Project
Equipment Equipment Improvement Improvement Revenue Revenue Revenue
-
Certificates Certificates Bonds Bonds Bonds Bonds Bonds
1996 1997 of 1992A of 1996A of 1992B of 1996B of 1990A Totals
Bonds payable $150,000 $225,000 $2,770,000 $4,685,000 $895,000 $3,320,000 $1,040,000 $13,085,000
Future interest payable 13,500 39,353 869,738 1,077,330 370,741 1,644,314 544,858 4,559,834
Totals $163,500 $264,353 $3,639,738 $5,762,330 81,265,741 $4,964,314 $1,584,858 $17,644,834
Payments to maturity:
1998 $84,000 $100,853 $418,940 $514,600 8111,589 $254,758 $111,188 $1,595,928
1999 79,500 84,000 423,850 819,550 108,358 314,753 118,238 1,948,249
2000 - 79,500 417,345 767,300 114,709 303,228 114,913 1,796,995
2001 - 409,743 735,115 115,505 306,401 135,706 1,702,470
2002 401,080 702,565 115,900 304,075 130,625 1,654,245
2003 401,080 493,980 115,900 301,355 125,488 1,437,803
2004 399,460 469,460 115,495 303,108 120,275 1,407,798
2005 396,180 444,785 114,675 304,195 139,150 1,398,985
2006 372,060 419,965 118,310 299,725 132,100 1,342,160
2007 395,010 116,390 299,680 125,000 936,080
2008 - 118,910 298,915 117,875 535,700
2009 419,034 110,725 529,759
2010 419,682 103,575 523,257
2011 418,864 - 418,864
2012 416,541 416,541
$163,500 $264,353 $3,639,738 $5,762,330 81,265,741 $4,964,314 $1,584,858 $17,644,834
tomo
Vamp
109
CITY OF LINO LAKES, MINNESOTA
CONSTRUCTION WORK IN PROCESS
December 31, 1997
Exhibit 4
Description
Fund 401: Capital Improvements
Public Works Storage Building
Land Expended
Easements Prior
Contractor Engineering and Other Total 1997 Years
$172,785 $19,146 $2,736 $194,667 $194,667 $ -
Fund 406: Area and Unit
Well #4 368,615 71,473 14,931 455,019 16,754 438,265
Utility Connections 125,560 3,537 129,097 115,126 13,971
Cedar Street lift station 243,555 42,129 5,800 291,484 87,210 204,274
4th Avenue trunk utilities 334,746 64,220 19,806 418,772 7,872 410,900
Lilac Street trunk utilities - 16,776 306 17,082 17,082 -
Lilac Street utility extension - 75 75 75
Laurene Avenue lift station 14,884 9,257 24,141 24,141
35W/Trunk 49 utilities 294,089 62,448 5,375 361,912 361,912
Total Fund 406 1,381,449 266,378 49,755 1,697,582 630,172 1,067,410
Fund 420: MSA Construction
Ware Road reconstruction
Fund 421: Sealcoating and Wearcourse
Sealcoating
77,357 3,864 81,221 81,221
178,085 23,779 201,864 201,864
Fund 456: 1994 Construction
Country Lake Estates 709,979 132,979 75,235 918,193 4,544 913,649
Highway 49 and Lake Drive 1,587,180 444,298 215,703 2,247,181 43,914 2,203,267
Hodgson Road Watermain 204,146 29,736 63,340 297,222 80 297,142
Total Fund 456 2,501,305 607,013 354,278 3,462,596 48,538 3,414,058
Fund 457: 1995 Construction
Woods of Baldwin Lake II
112,935 26,445 1,894 141,274 2,493 138,781
Fund 458: 1996 Construction
Trappers Crossing 709,086 163,606 25,338 898,030 76,993 821,037
Marshan Lake Townhomes 561,509 92,435 17,133 671,077 9,748 661,329
Centennial School 1,088,785 222,408 39,856 1,351,049 1,221,997 129,052
Total Fund 458 2,359,380 478,449 82,327 2,920,156 1,308,738 1,611,418
Fund 459: 1997 Construction
Otter Lake Road realignment 107,237 158,155 265,392 147,555 117,837
Otter Lake Service Road 9,447 37,770 47,217 45,803 1,414
Trapper's Crossing II 8,260 948 9,208 5,606 3,602
Total Fund 459 0 124,944 196,873 321,817 198,964 122,853
Fund 460: 1998 Construction
Lake Drive trunk utilities 40,328 881 41,209 41,209
Lake's Addition road reconstruction 61,801 61,801 61,801
Total Fund 460 0 102,129 881 103,010 103,010
Fund 433: Town Center
Infrastructure
Fund 452: Apollo Drive Construction
Apollo Drive
Totals
* Completed Project
110
144,451 49,080 3,107 196,638 196,638
0
2,021,295 429,174 171,503 2,621,972 * 17,444 2,604,528
$8,871,685 $2,203,894 $867,218 $11,942,797 $2,983,749 $8,959,048
— CITY OF LINO LAKES, MINNESOTA
INSURANCE IN FORCE
December 31, 1997
(Unaudited)
Exhibit 5
Coverage Amount
General Liability:
- Bodily Injury/Property Damage $600,000
Personal Injury/Police Professional Liability 600,000
Employee Benefit Liability 600,000
- Fire Legal Liability 50,000
Medical Expense Occurrence Limit 1,000
Medical Expense Aggregate 10,000
Property Damage ($500 Deductible)
Property:
Buildings and Contents 7,868,173
Valuable Papers ($500 Deductible) 50,000
Faithful Performance Blanket Bond 500,000
Storage Tank Liability 100,000
Mobile Equipment ($500 Deductible) 648,144
EDP - Electronic Equipment ($500 Deductible) 157,142
Rented/Leased Equipment ($500 Deductible) 200,000
Public Official and Employee Liability ($500 Deductible each occurrence) 600,000
•- Automotive:
Bodily injury and property damage 600,000
Comprehensive and Collision ACV
Uninsured motorists 600,000
Miscellaneous equipment ($500 Deductible) 5,490
taw
Workmen's compensation Statutory
Umbrella Liability 1,000,000
Crime - Theft Disappearance and Destruction ($500 Deductible) 50,000
111
CITY OF LINO LAKES, MINNESOTA
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES
(UNAUDITED)
Exhibit 6
Tax Capacity Tax Capacity
Values Values
1997/1998 1996/1997
Taxable valuations:
Total $9,679,139 $8,807,254
Fiscal disparities:
Distribution 1,395,540 1,370,726
Contribution (358,998) (367,350)
Less: Captured Tax Increment Value (555,542) (410,724)
Totals $10,160,139 $9,399,906
Tax Tax
Certified Capacity Certified Capacity
Levy Rate Levy Rate
Taxes levied:
Revenue $2,889,626 27.764 $2,646,110 28.171
Bond and interest 278,197 2.673 281,399 2.996
Totals $3,167,823 30.437 $2,927,509 31.167
Certified levy amount is after HACA deduction.
112
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT HOUSING DISTRICT #1 -1
December 31, 1997
(UNAUDITED)
Exhibit 7
Accounted
Amended for in Current Amount
Budget Prior Years Year Remaining
Sources of funds:
Tax increment collections $1,470,000 $1,488,280 $242,345 ($260,625)
Interest on investments - 220,066 5,039 (225,105)
Total sources of funds 1,470,000 1,708,346 247,384 (485,730)
Uses of funds:
Public improvements 1,470,000 1,097,491 372,509
Administrative 122,863 2,088 (124,951)
Developer assistance 105,000 - (105,000)
Transfer to other funds 35,092 593,196 (628,288)
Total uses of funds 1,470,000 1,360,446 595,284 (485,730)
Funds remaining (deficit)
- Name of District: Rice Lake Estates
District Number: H-4
Type of District: Housing
▪ Date Certified: June 29, 1987
Date Decertified December 31, 1997
Duration: 25 Years
▪ Tax Capacity:
Original $2,689
Current $185,033
s
$0 $347,900 ($347,900) $0
113
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT HOUSING DISTRICT #1 -2
December 31, 1997
(UNAUDITED)
Exhibit 8
Accounted
Amended for in Current Amount
Budget Prior Years Year Remaining
Sources of funds:
Tax increment collections $742,200 $675,454 $122,111 ($55,365)
Interest on investments - 59,424 2,178 (61,602)
Total sources of funds 742,200 734,878 124,289 (116,967)
Uses of funds:
Public improvements 630,000 512,196 39,202 78,602
Land acquisition 65,000 - 65,000
Demolition and site preparation 10,000 10,000
Relocation costs 15,000 15,000
Administrative 22,200 59,444 1,584 (38,828)
Transfer to other funds - 12,969 233,772 (246,741)
Total uses of funds 742,200 584,609 274,558 (116,967)
Funds remaining (deficit) $0 $150,269 ($150,269) $0
Name of District: Sunrise Meadows
District Number: I -5
Type of District: Economic Development
Date Certified: February 10, 1989
Date Decertified: December 31, 1997
Duration: 10 Years
Tax Capacity:
Original $23,272
Current $136,938
114
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT FINANCING DISTRICT #1-4
December 31, 1997
(UNAUDITED)
Exhibit 9
Accounted
Amended for in Current Amount
Budget Prior Years Year Remaining
— Sources of funds:
Bond proceeds $ - $ - $ - $ -
Tax increment collections 110,000 13,255 47,703 49,042
Interest on investments - - 660 (660)
Refunds and reimbursements 46,011 600 (46,611)
Total sources of funds 110,000 59,266 48,963 1,771
Uses of funds:
Administrative 110,000 51,812 3,511 54,677
..- Transfer to other funds - 11,914 - (11,914)
Total uses of funds 110,000 63,726 3,511 42,763
Funds remaining (deficit) $0 ($4,460) $45,452 ($40,992)
Name of District: Apollo Business Center
District Number: L -5
Type of District: Economic Development
Date Certified: April 20, 1990
Duration: 10 Years
Tax Capacity:
— Original $2,117
Current $50,527
Ilawr
115
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT FINANCING DISTRICT #1-5
December 31, 1997
(UNAUDITED)
Exhibit 10
Accounted
Amended for in Current Amount
Budget Prior Years Year Remaining
Sources of funds:
Tax increment collections $915,000 $ $26,874 $888,126
Interest on investments - 426 (426)
Total sources of funds 915,000 0 27,300 887,700
Uses of funds:
Land acquisition 155,000 155,000
Public improvements 685,000 24,186 660,814
Administrative 75,000 1,771 493 72,736
Total uses of funds 915,000 1,771 24,679 888,550
Funds remaining (deficit)
Name of District: Willow Ponds Senior Housing
District Number: M-6
Type of District: Housing
Date Certified: August 25, 1993
Duration: 25 years
Tax Capacity:
Original 3159
Current $63,578
1 1 6
$0 ($1,771) $2,621 ($850)
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT FINANCING DISTRICT #1-6
December 31, 1997
(UNAUDITED)
Exhibit 11
Accounted
Amended for in Current Amount
Budget Prior Years Year Remaining
Sources of funds:
Tax increment collections $41,250 $ - $10,525 $30,725
Total sources of funds 41,250 0 10,525 30,725
Uses of funds:
Public improvements 32,500 16,773 15,727
Administrative 8,750 2,501 377 5,872
Transfer to other funds - 25,077 (25,077)
Total uses of funds 41,250 27,578 17,150 (3,478)
Funds remaining (deficit) $0 ($27,578) ($6,625) $34,203
Vamo
Name of District: Udor
District Number: M -7
Type of District: Economic Development
Date Certified: August 23, 1994
Duration: 10 Years
Tax Capacity:
Original $360
Current $6,43 8
Wm
Immr
117
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT FINANCING DISTRICT #1 -7
December 31, 1997
(UNAUDITED)
Exhibit 12
Accounted
Amended for in Current Amount
Budget Prior Years Year Remaining
Sources of funds:
Tax increment collections $1,511,700 hl 0,373 $45,635 $1,355,692
Refunds and reimbursements - 3,800 12,100 (15,900)
Total sources of funds 1,511,700 114,173 57,735 1,339,792
Uses of funds:
Land acquisition 964,300 167,889 68,652 727,759
Public improvements 465,400 - 149,692 315,708
Administrative 82,000 26,194 95,134 (39,328)
Transfer to other funds - - 1,107 (1,107)
Total uses of funds 1,511,700 194,083 314,585 1,003,032
Funds remaining (deficit) $0 ($79,910) ($256,850) $336,760
Name of District: Apollo Business Park
District Number: M -9, N -9, 0-7
Type of District: Economic Development
Date Certified: May 31, 1995
Duration: 11 Years
Tax Capacity:
Original $60,130
Current $127,385
118
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT FINANCING DISTRICT #1 -8
December 31, 1997
(UNAUDITED)
Exhibit 13
Accounted
Amended for in Current Amount
Budget Prior Years Year Remaining
• Sources of funds:
Tax increment collections $985,000 $ $ $985,000
Total sources of funds 985,000 0 0 985,000
Uses of funds:
Land acquisition 850,000 850,000
Public improvements 85,000 85,000
Administrative 50,000 3,799 46,201
Total uses of funds 985,000 0 3,799 981,201
Funds remaining (deficit) $0 $0 ($3,799) $3,799
Name of District: Redevelopment
District Number: P -1 and P -2
- Type of District: Economic Development
Date Certified: September 9, 1997
Duration: 25 Years
▪ Tax Capacity:
Original $22,292
Current $ -
119
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF SOURCES AND USES OF FUNDS
FOR TAX INCREMENT FINANCING DISTRICT #3 -1
December 31, 1997
(UNAUDITED)
Exhibit 14
Accounted
Amended for in Current Amount
Budget Prior Years Year Remaining
Sources of funds:
Tax increment collections $1,750,000 $2,606 $3,336 $1,744,058
Refunds and reimbursements - - 10,500 (10,500)
Total sources of funds 1,750,000 2,606 13,836 1,733,558
Uses of funds:
Land acquisition 1,067,700 - 40,000 1,027,700
Public improvements 557,300 238,868 318,432
Administrative 125,000 6,597 87,983 30,420
Total uses of funds 1,750,000 6,597 366,851 1,376,552
Funds remaining (deficit) $0 ($3,991) ($353,015) $357,006
Name of District: Clearwater Creek Development Center
District Number: N-4 and N -5
Type of District: Economic Development
Date Certified: June 30, 1995
Duration: 11 Years
Tax Capacity:
Original $65,676
Current $288,459
120
III.
STATISTICAL
SECTION
121
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND EXPENDITURES BY FUNCTION
Last Ten Fiscal Years
(Unaudited)
Table 1
Fiscal Total General Public Public Parks and Other
Year Expenditures Government Safety Works Recreation Functions
1988 $1,590,102 $565,785 $616,076 $273,614 $98,316 $37,111
1989 1,896,204 624,499 750,629 377,087 142,472 1,517
1990 2,155,051 682,575 804,363 468,340 191,654 8,119
1991 2,268,639 667,448 845,420 499,737 256,034
1992 2,552,835 807,564 910,147 505,096 330,028
1993 2,829,202 911,230 1,025,157 565,019 327,796
1994 3,169,862 1,082,796 1,127,883 554,533 404,650
1995 3,557,038 1,173,047 1,265,064 700,873 418,054
1996 3,966,738 1,289,751 1,446,985 694,455 535,547
1997 4,400,087 1,366,602 1,751,226 756,016 526,243
122
limm
Now
ilaIr
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND REVENUES BY SOURCE
Last Ten Fiscal Years
(Unaudited)
Table 2
Total General
General Property Licenses Inter- Charges Fines
Fiscal Fund Taxes and Government for and Other
Year Revenue Levied Permits Revenues Services Forfeits Revenue
1988 $1,792,972 $769,915 $229,511 $549,567 $86,067 $70,142 $87,770
1989 2,081,795 848,472 256,987 698,558 96,680 73,614 107,484
1990 2,294,649 994,399 254,620 629,919 208,981 83,618 123,112
1991 2,421,534 1,179,087 332,392 483,015 195,190 86,603 145,247
1992 2,705,794 1,206,998 493,977 607,831 210,129 79,643 107,216
1993 3,177,662 1,420,369 565,684 673,944 239,562 83,019 195,084
1994 3,295,398 1,597,542 383,388 677,337 353,026 72,454 211,651
1995 3,772,335 1,941,415 544,267 738,652 241,393 93,861 212,747
1996 4,627,532 2,327,048 788,480 816,794 308,262 86,158 300,790
1997 4,749,974 2,658,485 566,561 881,459 291,090 99,390 252,989
123
CITY OF LINO LAKES, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
(Unaudited)
Table 3
Percent of Percent of
Total Tax Delinquent
Total Current Percentage Delinquent Total Collections Outstanding Taxes to
Fiscal Tax Tax of Levy Tax Tax To Tax Delinquent Tax
Year Levy Collections Collected Collections Collections Levy Taxes Levy
1988 $1,146,850 $1,121,251 97.77% $8,961 $1,130,212 98.55% $41,388 3.61%
1989 1,146,850 1,120,260 97.68% 16,811 1,137,071 99.15% 46,393 4.05%
1990 1,529,821 1,494,647 97.70% 21,620 1,516,267 99.11% 50,963 3.33%
1991 1,717,474 1,674,178 97.48% 24,342 1,698,520 98.90% 59,664 3.47%
1992 1,865,188 1,805,972 96.83% 24,395 1,830,367 98.13% 76,791 4.12%
1993 2,073,987 2,057,602 99.21% 50,099 2,107,701 101.63% 29,534 1.42%
1994 2,268,950 2,243,045 98.86% 15,014 2,258,059 99.52% 27,804 1.23%
1995 2,634,350 2,613,719 99.22% 21,206 2,634,925 100.02% 22,368 0.85%
1996 3,040,000 3,011,917 99.08% 15,641 3,027,558 99.59% 22,489 0.74%
1997 3,349,400 3,316,426 99.02% 23,962 3,340,388 99.73% 32,598 0.97%
Note: Does not include tax increment levies and collections.
Note: Current tax collections include State levy related credits (HACA).
124
Ivor
law
CITY OF LINO LAKES, MINNESOTA
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS
Last Ten Fiscal Years
(Unaudited)
Table 4
% of Current % of Total
Current Current Collections Delinquent Collections Total
Fiscal Assmts. Assmts. to Assmts. Assessments Total to Current Outstanding
Year Due Collected Due Collected Collected Assmts. Due Del. Assmts.
1988 $312,610 $204,150 65.31% $163,841 $367,991 117.72% $123,153
1989 326,516 223,757 68.53% 64,161 287,918 88.18% 161,751
1990 245,618 168,442 68.58% 107,879 276,321 112.50% 132,985
1991 351,941 293,452 83.38% 65,396 358,848 101.96% 126,088
1992 379,521 306,443 80.74% 82,664 389,107 102.53% 118,690
1993 632,067 580,678 91.87% 39,313 619,991 98.09% 43,036
1994 387,200 355,543 91.82% 32,743 388,286 100.28% 36,497
1995 394,770 353,424 89.53% 26,051 379,475 96.13% 10,221
1996 366,146 355,609 97.12% 26,831 382,440 104.45% 21,040
1997 593,957 589,158 99.19% 20,153 609,311 102.59% 5,692
125
- CITY OF LINO LAKES, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL
BONDED DEBT TO TOTAL GENERAL EXPENDITURES
— Last Ten Fiscal Years
- (Unaudited)
Table 5
Percent of
Debt Service
Interest Total Total Expenditures
Fiscal and Debt General to General
Year Principal Other Service (1) Expenditures (2) Expenditures
1988 $115,500 $7,795 $123,295 $1,590,102 7.75%
- 1989 - 11,475 11,475 1,896,204 0.61%
1990 60,000 29,542 89,542 2,155,051 4.15%
1991 127,500 108,872 236,372 2,268,639 10.42%
▪ 1992 172,500 114,821 287,321 2,552,835 11.25%
1993 177,500 108,276 285,776 2,829,202 10.10%
1994 282,500 96,268 378,768 3,169,862 11.95%
• 1995 228,500 96,135 324,635 3,557,038 9.12%
1996 188,000 100,248 288,248 3,966,738 7.27%
1997 188,000 106,785 294,785 4,400,087 6.70%
NNW
(1) Excludes tax increment, special assessment, enterprise, and EDA bonds.
(2) Includes expenditures of General Fund only.
• Note: Amounts rounded to the nearest hundred.
Vey
Immo
127
CITY OF LINO LAKES, MINNESOTA
ASSESSED (1) AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
(Unaudited)
Taxes Real Personal Fiscal
Payable Property Property Total Disparities
1989 $4,500,713 $228,822 $4,729,535 $902,364
1990 3,766,768 232,797 3,999,565 1,084,909
1991 4,250,314 283,565 4,533,879 1,006,228
1992 4,359,156 289,520 4,648,676 1,083,066
1993 4,557,819 309,993 4,867,812 954,529
1994 5,146,854 360,097 5,506,951 970,411
1995 6,204,237 392,508 6,596,745 879,810
1996 7,390,566 435,045 7,825,611 952,790
1997 8,344,972 462,282 8,807,254 1,003,376
1998 9,244,905 434,234 9,679,139 1,036,542
(1) The State of Minnesota changed the method of calculating property taxes effective for taxes payable in 1989.
Year 1989 reflects gross tax capacity values. Years 1990 through 1998 reflect net tax capacity values.
Source: Anoka County Department of Property Records and Taxation.
128
Table 6
Assessor's Estimated Ratio of Total
Net Taxable Market Value of Assessed to
Tax Increment Value Taxable Property Actual Value
($112,901) $5,518,998 $187,826,200 2.94%
(141,487) 4,942,987 231,211,700 2.14%
—
(215,224) 5,324,883 264,013,200 2.02%
(245,834) 5,485,908 290,466,200 1.89%
(244,419) 5,577,922 320,714,400 1.74%
(256,841) 6,220,521 368,367,100 1.69%
(287,819) 7,188,736 435,100,000 1.65%
(307,790) 8,470,611 501,825,800 1.69%
(410,724) 9,399,906 552,696,200 1.70%
(555,542) 10,160,139 627,423,800 1.62%
Nowo
129
CITY OF LINO LAKES, MINNESOTA
PROPERTY TAX RATES (3) - DIRECT AND OVERLAPPING GOVERNMENTS
Last Ten Fiscal Years
(Unaudited)
Table 7
Tax Rates (Per $100 of Tax Capacity)
Year
Taxes
Payable City School (1) County Other (2)
1989 20.025 53.967 27.425 5.972
1990 23.601 43.075 28.846 4.796
1991 26.564 68.717 31.400 5.133
1992 26.822 67.857 32.990 5.306
1993 29.386 60.589 32.779 6.510
1994 29.661 62.537 32.680 6.260
1995 30.772 64.308 32.765 6.977
1996 31.015 63.103 31.036 5.647
1997 31.167 66.000 30.542 5.197
1998 30.437 59.004 30.618 6.342
(1) The majority of Lino Lakes is served by School District 12.
(2) Other includes: Metropolitan Council, Mosquito Control, Metropolitan Transit,
Rice Creek Watershed District and Forest Lake Hospital.
(3) Years after 1989 are reported as tax capacity rate.
Source: Anoka County Department of Property Records and Taxation.
130
Total
107.389
100.318
131.814
132.975
129.264
131.138
134.822
130.801
132.906
126.401
CITY OF LINO LAKES, MINNESOTA
RATIO OF NET BONDED DEBT
TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
• Last Ten Fiscal Years
(Unaudited)
Table 8
Ratio of
Assessed Value Less Net Bonded
After Fiscal Gross Cash and Debt to Net
Disparities and Bonded Investments Net Assessed Bonded Debt
Year Population (1) Tax Increment (2) Debt (3) on Hand Bonded Debt Value Per Capita
1988 7,600 $187,826,200 $ - ($1,251) $1,251 0.00% 0.16
1989 8,235 231,211,700 300,000 (11,475) 311,475 0.13% 37.82
1990 8,807 264,013,200 1,630,000 58,685 1,571,315 0.60% 178.42
w
1991 9,273 290,466,200 1,591,000 105,537 1,485,463 0.51% 160.19
1992 10,056 320,714,400 1,553,500 121,842 1,431,658 0.45% 142.37
1993 11,193 368,367,100 1,526,000 222,111 1,303,889 0.35% 116.49
1994 12,266 435,100,000 1,393,500 142,173 1,251,327 0.29% 102.02
▪ 1995 13,097 501,825,800 1,341,000 135,440 . 1,205,560 0.24% 92.05
1996 13,756 552,696,200 1,378,000 194,807 1,183,193 0.21% 86.01
1997 13,756 627,423,800 1,415,000 111,834 1,303,166 0.21% 94.73
• (1) Population estimates provided from Metropolitan Council except for 1990 which reflects the federal census.
(2) The State of Minnesota changed the method of calculating property taxes effective for taxes payable in 1988 and again in 1991.
Years 1988, 1989 and 1990 reflect tax capacity values. Years 1991 through 1997 reflect tax capacity value based on a different
formula than in previous years.
(3) Amount excludes tax increment, special assessment, enterprise and EDA bonds.
Vow
131
CITY OF LINO LAKES, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
INCLUDING DEBT RATIOS
December 31, 1997
(Unaudited)
Table 9
Bonded Percentage
Gross Debt Applicable City Share
Overlapping Debt: Outstanding in City(1) of Debt
Anoka County $95,647,837 5.56% $5,317,452
School District 12 68,652,000 42.03% 28,854,378
School District 624 49,485,000 2.61% 1,291,750
School District 831 14,955,000 6.70% 1,002,503
SISD 916 31,720,000 0.77% 242,680
Metropolitan Council 654,256,659 1.55% 10,160,139
Total Overlapping Debt 914,716,496 46,868,902
Direct Debt:
City of Lino Lakes 1,415,000 100.00% 1,415,000
Total Overlapping & Direct Debt $916,131,496 $48,283,902
Debt Ratios:
Ratio of Debt per capita (13,756 population) - overlapping $3,407
Ratio of Debt per capita (13,756 population) - direct $103
Ratio of Debt per capita (13,756 population) - total $3,510
Ratio of Debt to estimated market valuation of $627,423,800 7.70%
(1) Determined by ratio of net tax capacity (after fiscal disparities and tax increment adjustment)
of property subject to taxation in overlapping unit to valuation of property subject to taxation in City.
132
CITY OF LINO LAKES, MINNESOTA
- COMPUTATION OF LEGAL DEBT MARGIN
December 31, 1997
— (Unaudited)
w
VW.
Table 10
Market Value
Debt Limit Percentage
1997/1998 1996/1997
$627,423,800 $552,696,200
2% 2%
Debt Limit 12,548,476 11,053,924
Total Bonded Debt 13,085,000 13,318,000
Less:
Special Assessment Bonds (7,455,000) (7,675,000)
Proprietary Bonds (4,215,000) (4,265,000)
Public Project Revenue Bonds (1,040,000) (1,065,000)
Cash in related Debt Service Funds (4,417) (13,703)
Total Debt Applicable to Debt Limit 370,583 299,297
Legal Debt Margin $12,177,893 $10,754,627
133
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF REVENUE BOND COVERAGE
WATER FUND
Last Six Fiscal Years (3)
(Unaudited)
Table 11
Net Revenue
Available Interest
Fiscal Gross Operating for Debt and
Year Revenues (1) Expenses (2) Service Principal Fiscal Charges Total Coverage
1992 $232,586 $142,923 $89,663 $ - $57,632 $57,632 1.56
1993 332,888 169,431 163,457 75,350 75,350 2.17
1994 394,245 149,764 244,481 25,000 66,080 91,080 2.68
1995 461,747 177,724 284,023 40,000 64,118 104,118 2.73
1996 466,310 210,778 255,532 50,000 170,881 220,881 1.16
1997 851,173 271,575 579,598 50,000 229,900 279,900 2.07
(1) Total Water Fund revenues and transfers in.
(2) Total Water Fund expenses exclusive of depreciation, interest on debt and fiscal charges.
(3) Prior to 1992 the City's Water Fund had no debt.
134
Immo
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL TAXPAYERS
(Unaudited)
Table 12
Ten of the City's Largest Taxpayers Percent of
1996 Net Tax City's Net
Taxpayer Type of Business Capacity Tax Capacity
Northern States Power Utility $254,647 2.51%
Minnesota Pipeline Co. Utility 63,333 0.62%
Minnegasco, Inc. Utility 62,298 0.61%
" Anoka Electric Cooperative Utility 56,175 0.55%
Moline Concrete Products Co. Manufacturing 51,254 0.50%
Custom Manufacturing Commercial/Industrial 38,521 0.38%
Nol -Tec Systems Commercial/Industrial 35,526 0.35%
Lino Lakes Investments Commercial/Industrial 35,200 0.35%
BBJ,LLC Commercial/Industrial 27,610 0.27%
... United Power Association Utility 27,246 0.27%
Source: Anoka County Department of Property Records and Taxation.
INN
135
CITY OF LINO LAKES, MINNESOTA
PROPERTY VALUE, CONSTRUCTION PERMITS AND BANK DEPOSITS
Last Ten Fiscal Years
(Unaudited)
Table 13
Fiscal Property
Year Value (1)
1988 $187,826,200
1989 231,211,700
1990 264,013,200
1991 290,466,200
1992 320,714,400
1993 368,367,100
1994 435,100,000
1995 501,825,800
1996 552,696,200
1997 627,423,800
Number of
Building Permits
Permit Bank
Valuation Deposits (2)
330 $18,145,012 Not Available
349 17,653,380 Not Available
350 23,229,413 Not Available
396 34,041,557 Not Available
615 36,636,546 Not Available
628 44,537,437 Not Available
566 26,713,028 Not Available
598 40,636,691 Not Available
588 74,061,188 Not Available
597 32,666,843 Not Available
(1) Assessor's estimated market value of taxable property from Table 6.
(2) Bank deposits are excluded due to the bank within the City is consolidated with banks outside the City.
As a result, local deposits are unavailable.
Source: City Inspection records.
136
CITY OF LINO LAKES, MINNESOTA
DEMOGRAPHIC STATISTICS
(Unaudited)
Table 14
Fiscal School Number of Unemployment
Year Population (2) Enrollment (1) Households (2) Rate (3)
1988 7,600 3,912 2,276 3.6
1989 8,235 4,130 2,448 4.2
1990 8,807 4,382 2,603 4.6
1991 9,273 4,638 2,777 4.9
1992 10,056 4,931 2,974 4.8
1993 11,193 5,219 3,313 4.8
1994 12,266 5,587 3,671 3.6
1995 13,097 5,932 3,899 3.1
1996 13,756 6,010 4,095 2.6
1997 13,756 6,230 4,095 2.5
•r (1) Centennial School District 12
(2) Metropolitan Council except 1990 is Federal Census
(3) Minnesota Department of Economic Security
137
CITY OF LINO LAKES, MINNESOTA
MISCELLANEOUS STATISTICS
(Unaudited)
Table 15
Date of Incorporation 5/11/55
Date of Adoption of City Charter 1/12/82
Form of Government Charter
Area of City (square miles) 33
Miles of Streets:
Trunk Highways
Paved - County
Paved - City
Number of Street Lights
Fire Protection:
Centennial Fire District
Total Number of Stations
(within Lino Lakes)
Total Number of Volunteers
(within Lino Lakes)
Police Protection:
Number of Stations
Number of sworn officers
Recreation:
Park area
Number of Parks & Playgrounds
Trails
Municipal Water:
Gallons Pumped
Number of Connections
Miles of watermain
Number of Fire Hydrants
Water Tower Capacity (gallons)
Municipal Sewer:
Number of Connections
Miles of sewermain
Employees:
Fulltime
Parttime
17.4
28.5
84.4
350
3
50
15
18
204.7 acres
22
10.5 miles
257,909,000
2,326
27.36
402
2 million
2,544
39.30
55
4
Elections:
Registered voters - last general election 7,354
Number of votes cast 3,274
Percent of registered voters voting 45%
138
HLB
Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
Independent Auditor's Report on Compliance and on Internal Control
over Financial Reporting Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
To the Honorable Mayor
and Members of the City Council
City of Lino Lakes, Minnesota
We have audited the financial statements of the City of Lino Lakes, Minnesota as of and for the
year ended December 31, 1997, and have issued our report thereon, dated April 2, 1998. We
conducted our audit in accordance with generally accepted auditing standards and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the City of Lino Lakes, Minnesota's
financial statements are free of material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts and grants, noncompliance with which
could have a direct and material effect on the determination of financial statement amounts.
However, providing an opinion on compliance with those provisions was not an objective of
our audit and, accordingly, we do not express such an opinion. The results of our tests
disclosed instances of noncompliance that are required to be reported under Government
Auditing Standards and which are described as follows:
Noncompliance with city contract
Under the terms of a contract originally dated in 1987, the City of Lino Lakes,
Minnesota has been, and continues to be, required to pay connection charges for
an area of the City which uses the infrastructure of a bordering City. The City of
Lino Lakes, Minnesota is required to remit these connection charges to the
bordering City. The City of Lino Lakes, Minnesota has been collecting the
connection charges but has not made any payments to the bordering City. The
bordering City was apparently unaware of their contractual rights. The City of
Lino Lakes, Minnesota's 1997 financial statements reflect a net liability of
$386,897 based on the settlement agreement approved May 26, 1998.
4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 612 426 7000 Fax: 612 426 5004
HLB Tautges Redpath. t.td_ is a member of
nternationai A assn, ld -wide organisation of of Launtmg Turns are 9 islness advise
Independent Auditor's Report on Compliance
and on Internal Control
Page 2
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City of Lino Lakes, Minnesota's
internal control over financial reporting in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and not to provide assurance on
the internal control over financial reporting. However, we noted certain matters involving the
internal control over financial reporting and its operation that we consider to be reportable
conditions. Reportable conditions involve matters coming to our attention relating to
significant deficiencies in the design or operation of the internal control over financial
reporting that, in our judgment, could adversely affect the City of Lino Lakes, Minnesota's
ability to record, process, summarize, and report financial data consistent with the assertions of
management in the financial statements. Reportable conditions are described as follows:
Control Environment
Our understanding of the circumstances regarding the compliance finding listed
previously in this report is that, possibly, this situation existed and continued due
to a work environment which was not conducive to achieving the goals of internal
control policies. Specifically, it appears that certain members of City
management were aware of this situation. There are allegations that the work
environment prevented staff from carrying out certain functions required for
internal controls over financial reporting.
A material weakness is a condition in which the design or operation of one or more of the
internal control components does not reduce to a relatively low level the risk that
misstatements in amounts that would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. Our consideration of the internal control over
financial reporting would not necessarily disclose all matters in the internal control over
financial reporting that might be reportable conditions and, accordingly, would not necessarily
disclose all reportable conditions that are also considered to be material weaknesses. However,
we consider the reportable condition listed above to be a material weakness.
We also noted other matters involving the internal control over financial reporting which we
have reported to the management of the City of Lino Lakes, Minnesota, in a separate report
dated June 16, 1998.
This report is intended for the information of the City of Lino Lakes, Minnesota's
management. However, this report is a matter of public record, and its distribution is not
limited.
/4/ ,Rectec4< oe,<&'
HLB TAUTGES REDPATH, LTD.
Certified Public Accountants
June 16, 1998
HLB
Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
June 19, 1998
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes
1189 Main Street
Lino Lakes, Minnesota 55014
Transmitted herewith are the following reports for the City of Lino Lakes, Minnesota for the
year ended December 31, 1997:
• 1997 Annual Financial Report (40 Copies)
• Financial Analysis and Management Considerations (20 Copies)
• Independent Auditor's Report on Compliance (15 Copies)
• Independent Auditor's Report on Compliance and on Internal Control (15 Copies)
The City is required to submit an additional copy of the Annual Financial Report and
Independent Auditor's Report on Compliance to the Office of the State Auditor by June 30,
1998.
If you have any questions relating to these reports, please advise.
Sincerely,
HLB TAUTGES REDPATH, LTD.
Thomas W. Hodnefield, CPA
TWH /clg
Enclosure
4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 612 426 7000 Fax 612 426 5004
HLB Tautges Hedged), Ltd. Is a member of 111 International. A world -wide organization of accounting firms and business advisers.
HLB
Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
Independent Auditor's Report on Compliance with Minnesota
Legal Compliance Audit Guide for Local Government
To The Honorable Mayor
and Members of the City Council
City of Lino Lakes, Minnesota
We have audited the general purpose financial statements of the City of Lino Lakes,
Minnesota, as of and for the year ended December 31, 1998, and have issued our report
thereon dated April 2, 1998.
We conducted our audit in accordance with generally accepted auditing standards, and the
provisions of the Minnesota Legal Compliance Audit Guide for Local Government
promulgated by the Legal Compliance Task Force pursuant to Minnesota Statutes Section
6.65. Accordingly, the audit included such tests of the accounting records and such other
auditing procedures as we considered necessary in the circumstances.
The Minnesota Legal Compliance Audit Guide for Local Government covers five main
categories of compliance to be tested: contracting and bidding, deposits and investments,
conflicts of interest, public indebtedness, and claims and disbursements. Our study
included all of the above listed categories.
The results of our tests indicate that for the items tested, the City of Lino Lakes,
Minnesota complied with the material terms and conditions of applicable legal
provisions, except as described in this report. Further, for the items not tested, based on
our audit and the procedures referred to above, nothing came to our attention to indicate
that the City of Lino Lakes, Minnesota had not complied with such legal provisions.
This report is intended solely for the use of the City of Lino Lakes, Minnesota and should
not be used for any other purpose. This restriction is not intended to limit the distribution
of this report which is a matter of public record.
Respectfully submitted,
r R3'544/ 4
HLB TAUTGES REDPATH, LTD.
Certified Public Accountants
April 2, 1998
4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 612 426 7000 Fax: 612 426 5004
HLB Tautges Redpath, Ltd is a member of ® Internatl onal A world -wide orgamratmn of account.ng firms and bus.ness ad,sers
Independent Auditor's Report on Compliance
Page 2
FINDING: One broker certification form was not updated for 1997
CONDITION: The State statutes covering investment broker certification forms changed
effective January 1, 1997. The revised statutes now require that these
forms be obtained annually. A 1997 broker certification form was not
received from one of the City's investment brokers.
CRITERIA: Minnesota Statute 118A.04 Subd. 9 reads in part as follows:
(b) Prior to completing an initial transaction with a broker, a
government entity shall provide annually to the broker a written
statement of investment restrictions which shall include a provision
that all future investments are to be made in accordance with
Minnesota Statutes governing the investment of public funds.
(c) A broker must acknowledge annually receipt of the statement
of investment restrictions in writing and agree to handle the
government entity's account in accordance with these restrictions. A
government entity may not enter into a transaction with a broker
until the broker has provided this written agreement to the
government entity.
RECOMMENDATION:
We recommend the City review this statutory section and apply
procedures to ensure that broker certification forms are obtained in
accordance with Statute 118A.04.
MEMORANDUM
TO: Sue Westphal
FROM: Mary M. Vaske
DATE: June 16, 1998
RE: Publication of attached document
Please publish the attached document in the legal section of the Quad Press in the June
22nd, 1998 addition.
If you have any questions, please feel free to call me.
Thank You.
CITY OF LINO LAKES
SUMMARY FINANCIAL REPORT
The purpose of this report is to provide a summary of financial information concerning the City
of Lino Lakes to interested citizens. The complete financial statement may be examined
at the City of Lino Lakes, 1189 Main Street, Lino Lakes, Minnesota, 55014. Questions
about this report should be directed to Mary Vaske, Finance Director at 464 -5562.
The following summaries are from the general purpose financial statements of the City for the
years ended December 31, 1996 and 1997. The right hand column shows the percentage
change in dollars between the two years.
Revenues and Expenditures for General Operations
(Governmental Funds)
Total Total Increase
Revenues 1996 1997 (Decrease)
Taxes 2,631,577 2,939,575 11.70%
Special Assessments 2,123,583 2,870,510 35.17%
Intergovernmental Revenues 1,795,541 1,255,395 - 30.08%
Licenses & Permits 788,480 566,561 - 28.15%
Charges for Services 622,606 598,920 -3.80%
Others 1,535,612 2,059,176 34.09%
TOTAL 9,497,399 10,290,137 8.35%
Expenditures
General Government 1,490,856 2,415,733 62.04%
Public Safety 1,438,478 1,661,090 15.48%
Public Works 723,696 764,592 5.65%
Parks, Recreation & Forestry 508,331 581,830 14.46%
Construction /Acquisition 3,408,812 2,983,749 - 12.47%
Capital Outlay 510,747 961,325 88.22%
Debt Service 2,880,061 881,398 - 69.40%
TOTAL 10,960,981 10,249,717 -6.49%
Excess of Revenues Over(Under)
Expenditures (1,463,5821 40,420 - 102.76%
Other Financing Sources (Uses)
Borrowing 4,866,978 1,171,020 - 75.94%
Transfers in lout) 0 0 "'
fund Equity, Beginning of the Year 10,423,983 13,827,379 32.65%
Fund Equity, End of Year 13,827,379 15,038,819 8.76%
City of Lino Lakes
Key Financial Health indicators
1997 1996 1995
Current Population 13,756 13,756 13,097
Net Tax Capacity 9,679,139 8,807,254 7,825,611
Percent of Property Tax Collected 99.02% 99.08% 99.22%
City Revenues Per Capita 748.05 690,42 593.28
(Governmental Funds)
City Expenditures Per Capita 745.11 832.87 650.39
(Governmental Funds)
Bond Rating Baal Baa1 Baal
The complete financial report available at the City of Lino Lakes includes the detail of this report.
CITY OF LINO LAKES, MINNESOTA
COMBINED STATEMENT OF REVENUE. EXPENDITURES AND
CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES
For The Year Ended December 31, 1997
Totals
Special Debt Capital (Memorandum Only)
Revenue: General Revenue Service Project 1997 1996
General property taxes $2,658,485 $ - $279,345 $1,745 $2,939,575 $2,631,577
Tax increments - - 498,529 498,529 378,307
Licenses and permits 566,561 - - - 566,561 788,480
Intergovernmental 881,459 44,469 40,553 288,914 1,255,395 1,795,541
Special assessments - 974,795 1,895,715 2,870,510 2,123,583
Charges for services 291,090 94,188 - 213,642 598,920 622,606
Fines and forfeits 99,390 - - - 99,390 86,158
Interest on investments 108,212 1,538 16,916 586,185 712,851 538,045
Refunds and reimbursements 54,688 - - 141,023 195,711 333,916
Miscellaneous 90,089 462,606 552,695 199,186
Total revenue 4,749,974 140,195 1,311,609 4,088,359 10,290,137 9,497,399
Expenditures:
Current:
General government 1,312,066 38,145 1,065,522 2,415,733 1,490,856
Public safety 1,661,090 - - 1,661,090 1,438,478
Public works 727,019 - 37,573 764,592 723,696
Parks, recreation and forestry 498,166 83,664 - 581,830 508,331
Capital outlay:
General government 54,536 53,022 107,558 176,066
Public safety 90,136 109,120 199,256 113,131
Public works 28,997 - 489,050 518,047 103,816
Parks, recreation and forestry 28,077 17,741 90,646 136,464 117,734
Debt service:
Principal 408,000 408,000 2,483,000
Interest and fiscal charges 473,398 - 473,398 397,061
Construction/acquisition - 2,983,749 2,983,749 3,408,812
Total expenditures 4,400,087 139,550 881,398 4,828,682 10,249,717 10,960,981
Revenue over (under) expenditures 349,887 645 430,211 (740,323) 40,420 (1,463,582)
Other financing sources (uses):
Operating transfer in - 15,000 257,000 - 272,000 46,122
Operating transfer out (15,000) - - (257,000) (272,000) (46,122)
Debt proceeds - 1,171,020 1,171,020 4,866,978
Total other financing sources (15,000) 15,000 257,000 914,020 1,171,020 4,866,978
Net increase (decrease) in fund balance 334,887 15,645 687,211 173,697 1,211,440 3,403,396
Fund balance - January 1 2,723,025 22,478 341,544 10,740,332 13,827,379 10,423,983
Residual equity transfer in - 846,211 846,211 1,872,084
Residual equity transfer out (19,243) (826,968) (846,211) (1,872,084)
Fund balance - December 31 $3,057,912 $38,123 $1,009,512 $10,933,272 $15,038,819 $13,827,379
CITY OF LINO LAKES, MINNESOTA
ENTERPRISE FUND
COMBINING STATEMENT OF REVENUE, EXPENSES
AND CHANGES IN RETAINED EARNINGS
For The Year Ended December 31, 1997
With Comparative Totals For The Year Ended December 31, 1996
Gas Totals
Water Sewer Utility 1997 1996
Operating revenue:
Charges for services $430,938 $585,149
Hook -up charges 21,500 17,200
Water meter sales 24,632 -
Other operating revenue 9,317 26,187
Total operating revenue 486,387 628,536
0
$1,016,087
38,700
24,632
35,504
1,114,923
$886,171
43,225
28,960
23,105
981,461
Operating expenses:
Personal services 75,257 79,130 154,387 145,181
Materials and supplies 90,795 7,626 - 98,421 42,286
Contractual services 28,423 45,621 5,932 79,976 74,332
Repair and maintenance 24,813 17,918 - 42,731 8,576
MCES sewer charges 297,202 297,202 260,421
Depreciation:
Purchased assets 26,527 5,241 31,768 29,550
Contributed assets 137,569 196,639 334,208 299,864
Utilities 50,364 45,468 95,832 83,672
Other 1,923 1,254 - 3,177 3,851
Total operating expenses 435,671 696,099 5,932 1,137,702 947,733
Net income (loss) from operations 50,716 (67,563) (5,932) (22,779) 33,728
Other income (expense):
Interest on investments 35,387 18,437 53,824 46,793
Special assessments 329,399 6 329,405
Bond interest (229,375) (229,375) (144,228)
Paying agent fees (525) - (525) (26,653)
Total other income (expense) 134,886 18,443 0 153,329 (124,088)
Net income (loss) 185,602 (49,120) (5,932) 130,550 (90,360)
Credit arising from transfer of depreciation
to contributed capital
Retained earnings (deficit) - January 1
Retained earnings (deficit) - December 31
137,569 196,639 - 334,208 299,864
514,384 522,380 (8,934) 1,027,830 818,326
$837,555 $669,899 ($14,866) $1,492,588 $1,027,830
Total liabilities, equity and other credits
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FROM: Mary M. Vaske
DATE: June 16, 1998
RE: Publication of attached document
Sue Westphal
MEMORANDUM
Please publish the attached document in the legal section of the Quad Press in the June
22nd, 1998 addition.
If you have any questions, please feel free to call me.
Thank You.
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